Fossil fuel subsidies on the rise
Despite the climate crisis and extreme weather this year, governments are continuing to pay out fossile fuel subsidies that are making the problems worse. / Statista
By Martin Armstrong for Statista
October 12, 2023
According to calculations by the International Monetary Fund (IMF), $7 trillion were spent on direct and indirect subsidies for fossil fuels in 2022. The war in Ukraine and the resulting rise in energy prices are partly responsible for the significant increase in the previous year, reports Statista.
But even before that, the trend was already upwards, as this infographic illustrates. Subsidies are also likely to increase in the future. According to analysts, the reason for this is the economic growth of the Global South and the resulting increase in the consumption of coal, oil and gas.
Government support for fossil fuels is equivalent to just over seven% of the planet's economic output. A direct comparison with another important government budget item, for example, shows how enormous this sum is. Education spending by all countries combined accounts for 4.3% of global gross domestic product.
Countering fossil fuel subsidies, according to the IMF, would not only offer a chance to put humanity back on track to meet its climate goals, but could also prevent 1.6mn premature deaths per year and increase government revenues by $4.4 trillion.
You will find more infographics at Statista
Data
Russia’s strong growth, driven by heavy military spending, has created growing inflationary pressure as the economy starts to overheat, the Bank of Finland institute for Emerging Economies (BOFIT) says in its weekly update.
In the most recent poll conducted by the Russian Public Opinion Research Center (VTsIOM), President Vladimir Putin's trust rating remained steady at 78.5%.
Ukraine’s leading investment bank Dragon Capital has cut its GDP forecast for Ukraine in 2024 in half to 4% y/y in anticipation of another year of war, The New Voice of Ukraine reported on December 7.
Czech industrial production increased by 1.9% year on year and by 2.8% month on month in October. The October increase follows a 5% slump registered in September, which alarmed local analysts.
Since 2018, economy has carried risk of severe balance of payments crisis. For the removal of that risk, the central bank’s net in and off-balance sheet FX position should at least turn positive.
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