Amazon’s founder Jeff Bezos recently raised the possibility of a ‘recession’, a debate broke out all over the world. Is recession really coming? Know what is the opinion of experts on this
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amazon (Amazon) Founder Jeff Bezos (Jeff Bezos) At the beginning of this week, he had expressed the possibility of recession very soon. After this, there was discussion all over the world whether the global economy is really heading towards recession? Keeping his point, Jeff Bezos has asked people to stop spending on expensive and luxury things like car or TV. Amidst the fear of economic recession, he has asked people to save money. In such a situation, what do the experts say about the possibility of recession, let us know….
Jeff Bezos said in an interview to CNN last week, “Keep saving. Keep preparing. If we get into even more serious economic trouble, little measures can save small businesses. You’ve got a little chance to play with the possibilities.”
alarm bells ringing
The statement of Jeff Bezos, the fourth richest man in the world, is a matter of concern, but he is not the first person to sound the alarm. Earlier, Goldman Sachs, one of the world’s top financial services and investment firms, had issued a similar warning. Goldman Sachs had said that there is a “possibility” of a global recession, the brunt of which will be borne by Europe.
Goldman Sachs CEO David Solomon told CNBC, “It is time to be cautious. I think if you are running a risk-based business, it is time to tread carefully. I think you have to prepare for more volatility.”
fear of recession
The fear of recession is not new. In 2020, after the Kovid-19 epidemic, the global economy had declined significantly. Although the recovery showed good signs in 2021, industrial production suffered a slowdown this year due to the war in Ukraine. The Russian invasion raised fuel prices around the world and inflation reached historic levels.
In September, an American firm Ned Davis Research predicted that there could be a worldwide recession in 2023. On his scale, the probability was 98 percent, a firm reading that has been this high only twice before, in 2008 and 2020.
Worry of World Bank, United Nations too
Earlier this year the World Bank (World Bank) and the United Nations (United Nations) Also warned that global inflation may increase due to the Kovid epidemic and the Ukraine war. Also, due to “debt and income inequality”, the process of recovery in emerging and developing economies may slow down.
Even before Jeff Bezos warned about the state of the global economy, there are clear signs in the US, the world’s largest economy, that consumers here are putting the brakes on spending due to high inflation and no commensurate increase in their incomes. . FedEx, which operates in more than 220 countries, warned in September that global demand was slowing. Due to this, there is a danger of 40 percent reduction in people’s earnings. Its CEO Raj Subramaniam also said that the shrinking demand is a sign of global recession.
In addition, Forbes reported a Bank of America survey last week, which said that 77 percent of fund managers believe a global recession is likely next year. While Britain has acknowledged it is facing a recession, the European Central Bank also said there is a “high probability” of recession in the 19 countries that use the euro.
Will India be affected too?
Despite the high level of retail inflation, India is in a better position. Reserve Bank of India Governor Shaktikanta Das and NITI Aayog Vice Chairman Rajiv Kumar have said that the risk of a global recession in India is low. For 2022-23, the RBI has told the rate of growth of the Indian economy at 7 percent.
India is expected to improve due to positive indicators such as the decreasing unemployment rate and the end of work from home option by IT firms. This suggests that the economy is in good shape, but high inflation and unemployment remain an ominous sign.
English Headline : Explained: Is the global economy heading towards a recession what Jeff Bezos’ statement meant in real