On Wall Street and the stock markets of major nations, the calls for a recession are growing louder, but for many of the families and companies that make up the global economy, the downturn has already begun. A recession is imminent and inflation is at its highest level in 40 years. Interest rates are sky high. markets for stocks are falling. Wages are not keeping up with cost of living rises. After touching a nearly three-month low during the previous session, oil prices fell in early Asian trade on Thursday as worries about oil demand were raised by probable global recession fears.As Europe’s energy problems cast a lengthy shadow over the economic future, the euro was trading around a two-decade low versus the dollar on Thursday. In relation to the rupee, the US dollar has increased by more than 6.7% this year. The government has thus increased import taxes on gold and placed additional charges on the export of gasoline, diesel, and aviation turbine fuel (ATF) in an effort to stem the collapse in the value of the Indian rupee. Several significant economies are predicted to go into recession during the next 12 months, according to a recent research by Nomura Holdings. Government policies that are too pessimistic and rising living expenses have caused a synchronised slowdown in global economic development.Nomura predicts that in addition to the US, the rest of the world will join the recessionary camp, including Europe, Japan, the UK, Canada, South Korea, and Australia. The purchasing power of households is declining as prices rise globally, especially for basic groceries and gasoline. While central banks are acting to combat the inflation spike, the increase in interest rates has a negative impact on individuals who are in debt. The discontent of workers, who claim their pay does not keep up with the cost of living, has already resulted in strikes in certain nations.Simply put, people’s money is vanishing quickly, and they are concerned that it may grow much worse.
By Subhechcha Ganguly
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