2022 was the year of economical growth across the globe. Many central banks around the world began unwinding the fiscal and monetary support they dialed up during the COVID-19 pandemic as businesses reopened and the labor market tightened. However, the Russia and Ukraine crisis made all this uncertainty across the globe.
Stock markets fell. German and French stock markets fell more than 4% to their lowest level since the pandemic 2020. FTSE index in London faced a drop of 3.5% in March 2022. This war has also given a jolt to various currencies. Despite some of the flight to safe-haven assets moderated in early March, the Euro was still down more than 4% against the dollar.
Influence on Southeast Asian markets
The Asian economies are not exempt either. The crisis has introduced a lot of unknowns for international political and economic structure, global trade, financial markets, currency, inflation, travel and flight, and people’s expectations of the economy. Even though the crisis happened on the eastern edge of Europe, it affects the entire world.
The geopolitical tensions elsewhere in the world are largely felt in Asia, and the estimation of the economic growth rate is not as positive as early in the year. But for now, Asia seems to be in a better position than other regions with a 2% rise in key markets as the developing countries in Asia would attract more business and investors for their smooth growth in the economy and for a safe and stable market, as Asia stands at a neutral political position and out of crisis center.
What could we learn from the crisis?
The crisis has proved that the media has the power to play a role in affecting the results and changing the political trends. Media has always been the source of information but with the advancement in the technologies and big user base, social media apps have played a vital role in reforming already shaped opinions. Russia and Ukraine crisis has also been the highlighted issue of the media globally but the use of information on social media platforms could affect government control and could lead to chaos among the audience that is receiving information.
The geographical tensions have given a boost to digitalization as the media houses are more focused on digital trends in this moment of chaos and a rise in buying opportunities Government of each country may give more support policy to drive local social media to grow up. A new spring may come to local content platforms such as social platforms, short video platforms, chatting platforms, and OTT categories.
The crisis might help the local service platforms for daily life to come forward as there is a high risk of western service providers cutting the service if there is a political conflict. The local platforms for transportation, online tickets, online banking, grocery shopping, and online delivery might get the attention and get more support from the local government. Given the limited experience during the crisis, the categories affecting people’s daily lives are critical in influencing their opinions and gaining confidence.
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