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5 Global Disruptions & How It Has Affected The Finance Industry

The last few years have been tumultuous for the economy. From a global pandemic that caused businesses to close to a war that rages on with one of the world’s most powerful superpowers. But have you ever wondered how these factors impact the economy and how we live? Many of us will be faced with an increasing cost of living crisis and rising energy prices, forcing more of us to seek help from an emergency loan because of these factors. Read more about them below.

Global Pandemic

As many of us know, the recovery from the global pandemic is shaping up to be anything but smooth. As businesses desperately try to make their money back from the downtime and time spent unable to trade, they are hiking their prices up, making daily life more expensive for many. As well as this, supplies are becoming increasingly difficult to come by, and the high demand drives prices up even further, which has resulted in a cost of living crisis.

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But it’s not just the general public that is finding elements of their lives more expensive, but businesses too. This is making it increasingly difficult for businesses to provide for their customers, pay their bills, and survive. And because of this, more workers are likely to be made redundant. Inflation, which banks are trying to reduce with interest rates, and the rising cost of living is making it difficult for both businesses and normal people to survive.

Ageing Population

An aging population in countries all over the world is having an impact on GDP. The working-age population propels the wealth of a country and provides opportunities for the economy to grow – but because we’re seeing this population slow or completely reverse in some cases, it goes without saying that the economy in these countries will take a hit. An aging population that can no longer work leads to a shortage of workers. This, in turn, will push up wages and cause increased inflation.

Wealth Inequality

This is one of the biggest problems when it comes to society today. Yes, there may be growth in incomes and wealth across many economies all over the world, but this does not close the gap between the highest earners and those on a low income. This can lead to issues within the country and cause social tensions, as many call for political actions to take place. Recent years have shown that although there has been an increase in wealth, there has also been an increase in household debt and economic inequality – leading to increased lending and inflation rates.

Environmental Factors

Many of us are becoming more aware of the damage we’re doing to the planet, but did you know the economy can have an impact on the environment too? Our planet needs to be protected, which is at the forefront of many of our minds in 2022. And emissions are still increasing, which puts vulnerable economies at risk, as well as industries and the people that benefit. But on the other hand, there are changes being made to ensure that we reduce the impact we’re having on the environment – like renewables.


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This year, a war between Ukraine and Russia broke out. This is having an impact not only on those countries but worldwide. When a war takes place, there is almost certainly damage to infrastructure. As well as this, there will be a decline in the working population which can cause the economy to shrink. One of the global financial factors that come with this war is the shortage of supplies exported to other countries. This causes inflation rates to rise, with the uncertainty of when supply will resume. At the same time, war can cause devastation in the country where it’s taking place. It can also have a knock-on effect on economies around the world.