1 week Ago
Global economists have long warned that a recession may be looming. With high inflation, sluggish growth, and several troubling indicators pointing to a slowing global economy, many have been waiting for an external shock to tip the balance—pushing markets into crisis and triggering a recession. With Donald Trump back in office, that shock now seems more imminent.
The United States has begun imposing sweeping tariffs on countries across the world, prompting swift retaliatory tariffs from China. The resulting trade tensions have sent shockwaves through global markets. Stock exchanges worldwide have reacted with visible panic, with investors dumping shares en masse and retreating to the safety of cash and liquidity.
The prevailing sentiment is one of deep mistrust in growth prospects and increasing fear of prolonged instability. Pakistan has not been immune. On Monday, the Pakistan Stock Exchange saw a dramatic plunge of 3,882 points, driven by panic selling that triggered several trading suspensions designed to pause the freefall and restore some measure of calm.
Rising commodity prices, disruptions in global trade routes, and the breakdown of predictable production patterns all point to a turbulent period ahead before markets can find their footing again. BZU administration evicts illegal occupants As an import-heavy economy, Pakistan may see limited short-term advantages if new trade corridors open up, but overall, it remains vulnerable. Sustaining economic momentum in the face of such global uncertainty will be an uphill task.
Although President Trump has reportedly acknowledged the risk of sparking a global market meltdown and has urged caution, such reassurances mean little if his administration continues to pursue unpredictable, sweeping tariffs with little warning or coordination. Investors across the world are jittery. In times of uncertainty, self-preservation becomes the primary instinct—people will prioritise protecting their assets over supporting broader economic stability.
Unless global leaders quickly re-establish some degree of predictability and cooperation, the fear of a global recession will only grow stronger. Tags: fearing recession.
