Global geopolitical and geoeconomic processes are pushing the world economy into a more difficult phase, and the risk of an economic crisis is increasing.

On the one hand, there are new increases in the number of infections of the COVID-19 virus in a number of developed countries, on the other hand, the Russian-Ukrainian war does not affect the economy of most leading countries, including the Eurozone.

In the context of the Russia-Ukraine war, the global economic growth forecast for 2022 was reduced from 4.1 percent to 2.9 percent.

This year's forecasts for the European Union have also been revised.

Europeans, who predicted a 4.0 percent growth at the beginning of the year, reduced this indicator to 2.8 percent.

All this has increased the market uncertainty that the demand for oil will decrease, and this is also observed in the prices.

Instability continues in currency markets.

The world's leading currencies, including the euro, are falling sharply.

So, for the first time in the last 23 years, the exchange rate of the Euro equaled with the dollar.

Now it was necessary to pay almost 1 dollar to buy 1 euro in the stock exchanges.

In the last 1 year, the euro has lost 18 percent of its value.

The devaluation of the European currency accelerated after the start of the Russian-Ukrainian war.

On the other hand, Russia's restriction of gas supplies to Europe and expectations of high inflation in the eurozone, negative revisions in economic forecasts and a deeper crisis in general weaken the euro.

Sharp increases in the price of blue gas are seriously inhibiting the development of the real sector in the "old continent".

Against the background of the depreciation of the euro, the appreciation of the dollar has made the situation in the US economy difficult.

The US Federal Reserve System (FED) last month increased the Fed rate by 75 basis points to the range of 1.50-1.75 percent.

This was the highest increase since 1994.

They do not rule out that the exchange rate in the United States will be increased again in July.

Experts say that the discount rate will increase by 1.75 basis points to 3.4 percent by the end of the year.

Although the FED aims for 2 percent inflation this year, the 12-month price increase level is approaching 7.0 percent.

This is the highest rate of inflation in the United States in the last 40 years.

On the other hand, the growth in the United States GDP was 1.7 percent against the forecast of 2.8 percent.

Increased demand following the COVID-19 pandemic has driven up energy and fertilizer prices.

Global food price increases started to increase with the start of the war in Ukraine, including restrictions on imports by countries that accelerated the increase in wheat prices.

In such a case, a number of countries are faced with food security problems.

Developing countries in Africa, Asia, Latin America and the Middle East suffer from trade restrictions.

The oil market does not remain unresponsive to global risks.

It is true that the current price is also quite high and enables the foreign currency income of energy countries to increase.

However, the recent trend does not rule out high volatility in the oil market and price jumps at any time.

Economist expert Elshad Mammadov told "APA-Economics" that there is currently a sharp increase in inflation in the world: "This is not only related to the increase in the money supply. The sharp increase in the money emission of the leading central banks plays a role in the increase in inflation. In addition, supply inflation is a witness." This is related to the imbalances in transport and logistics mechanisms in production. All this makes the reshaping of markets and the acceleration of de-globalization trends inevitable."

Economist expert Aslan Azimzadeh told "APA-Economics" that the global economic recession is also evident in the economic indicators of the leading countries: "Currently, industrial inflation in the United States is 25%, and inflation based on the consumer price index in the Eurozone is 8.6%. and this is not an optimal indicator for those countries. In the fight against these indicators, various methods are used in the countries in question, including us, where central banks increase interest rates. However, the stagnation in the world economy is not related to the money supply, but due to the large monetary policy conducted it will not have any effect. We saw this in the fact that the FED's rate increase was not so effective."

Against the background of all this, economic stability has been preserved in Azerbaijan.

Both we spent the pandemic period very well economically, and despite the fact that there are certain setbacks in the world economy, an increase in the economic indicators of Azerbaijan is visible.

Of course, this allows us to say that the mechanism of rational economic management is working in Azerbaijan.

In particular, it should be said that within the framework of the reconstruction and restoration works carried out in Karabakh, Azerbaijan can get seriously high economic dividends.

Foreign direct investments are the main factor determining sustainable development of any country.

These investments become effective when they transfer technologies with them.

In the context of investments attracted to Karabakh, technology transfer can be one of the main factors characterizing the stability of the country's economy.

The crisis in the world economy is mostly in the field of energy and food.

In general, in a certain sense, the main reasons for the increase in inflation in Azerbaijan are mostly external factors.

Of course, we can give an example of the increase in the price of imported goods.

That is, inflation is mostly imported inflation.

Both in the global financial crisis of 2008 and in the Covid-19 pandemic, we saw that Azerbaijan has a stable economic system against all kinds of crises, which can easily bypass these crises.

In general, in a certain sense, the main reasons for the increase in inflation in Azerbaijan are mostly external factors.

Of course, we can give an example of the increase in the price of imported goods.

That is, inflation is mostly imported inflation.

Both in the global financial crisis of 2008 and in the Covid-19 pandemic, we saw that Azerbaijan has a stable economic system against all kinds of crises, which can easily bypass these crises.

In general, in a certain sense, the main reasons for the increase in inflation in Azerbaijan are mostly external factors.

Of course, we can give an example of the increase in the price of imported goods.

That is, inflation is mostly imported inflation.

Both in the global financial crisis of 2008 and in the Covid-19 pandemic, we saw that Azerbaijan has a stable economic system against all kinds of crises, which can easily bypass these crises.