DEVELOPMENT OF THE WORLD ECONOMY: STATE, TENDENCIES, FACTORS OF INSTABILITY AND CHALLENGES OF TIME

Abstract

The article considers the main issues concerning the development of the world economy in the time of globalization. Today there are certain challenges, which affect the state of the world economy, trend formation in its functioning. The main factor of instability at the current stage of development of the world economy is the crisis due to the COVID-19 pandemic, which affected all countries and led to reduction in international trade, unemployment rising, poverty rising (especially in Africa, where GDP per capita in 2019 was the lowest in the world), etc. Nowadays many companies strive to implement flexible employment, which gives people an opportunity to work from various countries online without leaving their houses. Basically, it provides employers with safety. In 2020 there are 78% of all companies, which have implemented this employment system compared to 53% in 2019. The article reflects the dynamics of world trade during 2015–2019, reflecting growth of world exports until 2018 and growth of service trade until 2019. Electrical appliances, their parts, equipment were a significant part of world export. Moreover, there are several countries, which were the main service exporters and importers in 2019: USA, China and United Kingdom. Fluctuations in world inflation were noticeable, in 2020 amounted to 4.9%. Zimbabwe and Sudan had the highest inflation level in 2021 – 348.6% and 269.3% respectively. In addition, one of the trends implies the expansion of trade through the development of network technologies that have made it possible to sell goods and services online. A large-scale engine for the development of the world economy is the activity of TNCs, which foreign direct investment moves through and which accelerate scientific and technical progress in the time of globalization. Nowadays TNCs have more opportunities to expand their markets and boost their sales due to information revolution, which also allowed companies to establish relations with different enterprises. One of the most important aspects implies gradual reorientation of economic forces towards China, which creates strong competition with the United States as a world leader.