Almost all countries will hit recession in next 1 year: Global downfall has already begun for major economies
Euro at 20-year low, Rupee all-time low, crude falls amid fear.
The recession calls are getting louder on Wall Street and share markets of major economies, but for many of the households and businesses who make up the world economy the downturn is already here.
Highest inflation in 40-years and a recession on the horizon. Interest rates through the roof. Stock markets on the decline. Wages lagging behind cost-of-living increases.
Oil prices slipped in early Asian trade on Thursday, after hitting a nearly three-month low during the previous session, as fears of a potential global recession spurred concerns about oil demand.
The euro hovered near a two-decade low against the dollar on Thursday as Europe's energy woes cast a long shadow over the economic outlook.
The US dollar is up over 6.7% against rupee so far this year. So to limit the decline in the Indian rupee, the government has imposed a windfall tax on domestic crude producers, imposed new levies on the export of petrol, diesel, and aviation turbine fuel (ATF), and hiked import duty on gold.
In a recent report, Nomura Holdings said that several major economies are set to enter recession over the next 12 months. Bearish government policies and spiraling living costs have thrown the global economy into a synchronised growth slowdown.
Along with the US, Nomura anticipates that Europe, Japan, the UK, Canada, South Korea, and Australia would also enter the recession camp. As many as seven central banks across the world have opted for tighter rates to control rising prices to shield their economies from the repercussions of the ongoing Russia-Ukraine war.
Prices are soaring worldwide, particularly for essential foods and fuels, eroding the spending power of families. Central banks are responding to the inflation surge, but as they push up interest rates that turns the screw on those with debts. Workers are complaining their wages are not keeping up with the cost of living, a frustration that has already led to strikes in some countries.
Quite simply, people's money is disappearing fast, and they are worried it could get a lot worse.