2023-04-24 09:36:27
Delhi: While the economic problem has occurred in many countries internationally, information has been released about which countries will experience economic recession.
The Corona Pandemic has put us on a path for two years. The economy was badly affected during the Great Depression. Central banks then cut interest rates sharply to protect the economy.
At the same time, after the end of Corona, there was a lot of money flow, which led to the rise in prices. As a result, prices rose sharply in all countries, starting with the United States.
Central Banks: To cope with this situation all the central banks are now continuously raising interest rates. The US has been raising interest rates by 0.75% and 0.5% continuously. As the interest rate continues to rise like this, it affects the economy severely. Thus, even if prices come under control, there is also the risk of recession in many countries.
A recession is a decline or contraction in economic activity… the economy experiences a significant downturn when our spending declines. This slowdown in economic activity will last for a few quarters, resulting in a complete halt in the growth of the economy. In such a scenario, all economic factors such as GDP, corporate profits, employment etc. fall.
Depression: People will be hit hard by this. Thus any central bank is taking necessary measures to prevent economic recession. Meanwhile, a data was recently released on which countries are at risk of recession. A number of Asian countries are said to be at high risk of entering recession.
If central banks keep raising interest rates, there is a risk of a global recession starting in 2023, it said. Interest rate hikes to fight inflation may cause us to enter a recession. Already, some banks in the United States have been pushed to the point of economic bankruptcy.
Countries of the world: America’s famous magazine Bloomberg has created a recession meter. Globally, 75 percent of the developed world has a 75 percent chance of experiencing a recession, with most in Western countries such as Britain. Similarly New Zealand has 70 percent and USA 65 percent. Also, it has been said that Canada has a 60 percent chance of recession and Australia has a 40 percent chance of recession.
Similarly, among developing countries, South Africa has a 45 percent risk of recession, Brazil 15 percent and Mexico 27 percent. In Indonesia, 2 percent, China 12 percent, Brazil 15 percent, Switzerland 25 percent economic recession is said to be likely.
India: Even in Saudi Arabia, which is entirely focused on crude oil, a 5% economic slowdown is likely. But it is said that there is no possibility of economic recession in India alone. It has been said that there is only a zero percent chance of economic recession in our country.
Compared to other countries, India’s economy is said to be in good shape. Also, it is reported that the economic growth of the country remains at 5.9%. Moreover, it is said that the country’s economic growth will be 6.3% in 2024.
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