- By Faisal Islam
- Economics editor
Just a week ago, the expectation about the latest gathering of the World Economic Forum in Davos, Switzerland, was of a line being drawn under three years of pandemic, lockdown and Ukraine war energy shocks.
Inflation is falling, and 2024 was set to be the year that central banks start cutting interest rates, including here in the UK. In three years of different rolling, merging global crises, the world economy has been in the shadow of massive geopolitical shifts.
The events of the past few days shows that the “polycrisis” is far from over.
Perhaps the most telling development has been the ability of the Houthis to use relatively cheap drones and armaments to cause havoc with world trade. Air strikes on the Houthis in Yemen were carried out explicitly to keep the currents of trade and economic recovery flowing through the straits leading to the Suez Canal.
But oil prices jumped on Friday because the risk of a wider confrontation in the region has also gone up. In three months the crisis in Gaza has led to RAF jets attacking targets in…
