Which way is the global economy heading?

The balance of economic power in the world is changing.

We are transitioning to an economic order where the world economy is no longer determined solely by financial institutions like the IMF and the World Bank, but also by energy supply security, logistics routes, and critical minerals.

THE COUNTRIES DETERMINING THE WORLD ECONOMY ARE CHANGING

While the world economy after World War II was determined by economic institutions and organizations established by the US and European countries, the influence of these countries has been diminishing in recent years, while China and developing countries, in particular, have come to the fore.

The center of economic gravity is shifting from the US and Europe to countries like China and India.

INTERNATIONAL ECONOMIC INSTITUTIONS ARE CHANGING

The world economy is no longer determined solely by financial institutions such as the IMF and the World Bank.

Expectations from the IMF and World Bank, which are guided by the US and European countries, have decreased, and there is also great discomfort with the prescriptions imposed by these institutions.

On the other hand, it is also a fact that there is a search for an economic order in which alternative institutions to the IMF and World Bank are rapidly developing.

ENERGY SUPPLY SECURITY IS NOW A FUNDAMENTAL DETERMINANT

We are in a period where the dependence of economies on energy supply security is stronger.

Countries that ensure energy supply security will also ensure the security of their economies, and it is clear that they will be the least affected by geopolitical risks that escalate on energy supply routes, especially at points like Hormuz, Suez, and the Red Sea.

Therefore, countries that diversify their energy supply security and keep alternative corridors under control will have significant advantages in becoming political and economic powers.

It is clear that Türkiye's recent projects in energy pipelines, especially Turkish Stream and TANAP, and its goal of becoming an energy hub, have made significant contributions to its becoming an important actor in terms of political and economic power.

THE REALITY OF CRITICAL MINERALS

The economy is no longer determined solely by energy sources such as oil, natural gas, or coal.

Alongside energy sources, there are now rare earth elements.

Because rare earth elements are indispensable inputs for green transformation and digitalization.

Therefore, countries that hold rare earth elements will determine who holds power in the economy in the new era.

For this reason, the unipolar economic structure determined by international financial institutions is disappearing; a multipolar, fragmented global economic order is coming, in which energy, critical elements, and logistics routes are dominant.