Global economy was spared a US debt default, but still faces other risks; understand

Problems such as high inflation, rising interest rates and sluggish growth were temporarily overshadowed by the possibility of a US default

With the threat of an unprecedented US debt crisis fading, the global economy appears to have avoided a major shock. But there are still many unresolved issues worsening the outlook.

US lawmakers in the House of Representatives passed a bipartisan bill on Wednesday to raise the debt ceiling and allow the government to continue paying its bills. It still requires Senate approval, but the risk of a catastrophic default that could have triggered a global market meltdown has all but disappeared.
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