Electric vehicles could become economically competitive in Africa by 2040, according to a new analysis, while the U.S. national debt is projected to reach a record 120% of GDP by 2030. These developments, along with shifts in the gold market and the resurgence of oil exploration, paint a complex picture of the global economy.
A recent study indicated that electric vehicles (EVs) could be cheaper to own than gasoline-powered cars in many African countries by 2040, particularly with the use of solar off-grid charging. The analysis, published by MIT Technology Review, noted that while EVs currently face challenges in Africa, including unreliable grids and limited charging infrastructure, the falling costs of batteries and vehicles are making the economic case for EVs stronger. Electric two-wheelers, cars, and even minibuses could become competitive in most African nations.
Meanwhile, the U.S. national debt is on track to surpass its post-World War II record. A report released by the Congressional Budget Office (CBO) revealed that the national debt is projected to reach 120% of GDP by 2030, up from the current 101%. Fiscal watchdogs have warned that such high levels of debt could hinder sustainable economic growth and national security. The U.S. is currently facing a federal budget deficit of $1.9 trillion.
In the energy sector, Big Oil is increasing global exploration outside of the Americas. Chevron announced its return to Libya on February 11, after a 15-year absence. This shift comes as the U.S. shale oil boom matures, prompting major producers to invest in costly global efforts.
The gold market is also showing unusual behavior. According to Apollo chief economist Torsten Slok, the historical inverse correlation between gold prices and real interest rates has broken down. Slok observed that since the Federal Reserve began raising interest rates in 2022, the expected pattern has disappeared, leading him to believe that investors are becoming increasingly jittery about the economy. Gold has traditionally been viewed as a safe-haven asset during economic uncertainty.
In other news, Olympic skier Eileen Gu, at age 22, has amassed a net worth exceeding $20 million. She is also a student at Stanford University. Gu emphasized the importance of young people not waiting to pursue their goals, stating, "You can do it all now." She earned $23.1 million last year, according to Forbes, making her the fourth-highest-paid woman in sports.
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