The increase in global interest rates has a significant impact on world economic growth. When central banks, such as the US Federal Reserve, increase interest rates to control inflation, the effects ripple throughout the international financial system. First, rising interest rates make borrowing costs higher. Businesses that rely on debt for expansion must face a heavier liability burden, thereby reducing investment in new projects. As a result, productivity growth is hampered, and lower labor absorption can increase the unemployment rate. Second, individuals who rely on loans to purchase a home experience the direct impact of rising interest rates. With more expensive installments, many people are forced to postpone property purchases, resulting in a slowdown in the real estate sector. The decline in demand for homes affects the local economy with falling property prices and reduced income for developers and contractors. Third, this impact is also visible in the international trade sector. An increase in interest rates makes the currencies of countries with higher interest rates stronger. This can result in export products becoming more expensive on the global market, reducing the country’s competitiveness. Conversely, countries with lower interest rates can attract more foreign investment, potentially worsening the trade balance for other countries. Furthermore, rising global interest rates affect capital flows. International investors tend to shift to higher-yielding assets, leading to capital inflows to countries that offer higher interest rates. However, developing countries that cannot compete with high interest rates often experience an outflow of capital, which creates pressure on exchange rates. Exchange rate instability can lead to higher inflation and increase import costs, worsening economic conditions. On the other hand, an increase in interest rates could be a positive signal that the global economy is relatively stable. Central banks generally raise interest rates when they believe economic activity is strong enough to absorb the additional costs. However, if increases are not handled appropriately, uncertainty could arise, potentially reducing consumer and investor confidence. It is also important to consider the implications for fiscal policy. Governments may have to adjust public spending and increase taxes to maintain their financial stability in a higher interest rate environment. Budget cuts could result in reduced investment in infrastructure and public services. Thus, the impact of rising global interest rates cannot be considered trivial. Each country and economic sector will feel the effects in different ways, creating challenges and opportunities for governments and market players. Careful monitoring and policy adjustments will be needed to minimize the negative impact of these interest rate changes.