First COVID, Russia-Ukraine war and now the World Bank report. For some time, the threat of recession is being expressed, the report of the World Bank is working to seal that.
The recent report of the World Bank is disturbing to the employed people.
Image Credit source: The Globe and Mail
first covid, Russia-Ukraine war and now World Bank report. For some time, the threat of recession is being expressed, the report of the World Bank is working to seal that. The report said that the rising interest rates of central banks are disturbing. The world economy may be caught in a cycle of recession. There may be a recession in 2023.
The world’s leading economists have already expressed the danger of this. Now the report that has come out is troubling the employed people. The report brings back memories of layoffs during COVID.
What does the World Bank report say, what are some methods being adopted to deal with the recession around the world and why are the problems of the employed people increasing? Understand the answer to every question in 5 points…
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What the report says: According to the recently released World Bank report, the biggest decline is being seen in the global economy. This is the biggest decline since 1970 which is disturbing. Its biggest impact is being seen in America, China and European countries. In these countries of the world, if the economy derails a bit, then the effect of recession can start showing.
How the effect will look: Understand in simple language, central banks around the world are increasing interest rates to deal with inflation. With this, it will become expensive to take loans from companies to you consumer. The demand for credit will decrease. As a result, there will be a brake on the pace of economic activity. As economic activities decrease, the effect of recession will start showing. The company will try to save at least the cost.
How much danger to the employed people: According to experts, jobs will decrease when the economic speed of the companies decreases. Sensing the danger, 50 percent of companies around the world are already preparing for layoffs, says the Price WaterhouseCoopers report. 46% of companies are eliminating bonuses. Not only this, 44 percent of the companies have withdrawn the offer to the new employee. According to another report, in the very first year of COVID, 250 million people of the world were fired.
Understand the effect with this example: The BBC has included many important information related to the world’s well-known delivery company FedEx in its report. According to the report, the company has told its investors that there will be a huge reduction in package delivery. The biggest impact has been expressed on the business of Asia and Europe. The company’s shares fell up to 20 percent amid the threat of losses. Not only FedEx, companies like Amazon and Royal Mail are also included in this list.
Here the situation worsened for the employed people: The report says, by July, the jobs of employees of more than 30 thousand tech companies in America were terminated. These include companies like Microsoft and Meta. This figure is expected to increase in the coming days.
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