What economists say about World Economic Crisis

More & more economists seem to be talking about recession these days. Many factors including the deteriorating economic situation caused by Corona virus supply chain disruptions &  Ru- ssian invasion of  have pushed inflation to a level not seen in decades.

To overcome thi banks raise interest rates but the stock market especially the United States US stock market has repeatedly fallen & other indicators are a reflection of investor distrust.

What economists say about World Economic Crisis

& many experts believe that this is a sign of a recession in days to come: a recurring period of slowdown in economic activity or a decline in gross domestic product.

Technically a slump in GDP for 2 consecutive quarters is called a continuous recession.

According to a recent survey by the Financial Times &  the University of Chicago Booth 7 out of 10 economists in the US United States believe it will come this year or next.

The survey was conducted before Black Week & the new rate hike in early June so the ratio is likely to rise.

Consequences of a recession can be serious: investment consumption & liquidation company closures massive job cuts & failure to repay loans which can lead to many individuals & companies going bankrupt.

Four economists have spoken about  recession in the US United States & the world in the near future.

Mr David Wessel director of fiscal & monetary policy at the Brookings Institution Washington DC  says it is difficult to predict a recession. A recession usually comes after a situation that no 1 imagined. Sometimes experts predict a recession with absolute certainty but it does not.

However I see a significant potential for a recession in US United States in 2023 about 65%. Federal Reserve Chairman Jay Powell does not want any progress to backfire on his predecessor efforts to reduce inflation.

Currently the Fed clearly needs to raise interest rates to reduce demand keep up  pressure on price increases & control the causes of inflation.

However at some point the Fed may have to make more decisions whether to raise interest rates further or freeze them as the economy will slow down & inflation will fall but all of this will fall short of the 2% target. Is less

Good arguments can be made on any of these situations but I expect United State US Federal Reserve to tighten rather than soften it so the recession in the country economy will increase even if it is moderate.

I hope I am wrong that all  problems of the global supply chain have-been solved & the effects of the Corona Virus epidemic on the global economy have ended&  we & the Federal Reserve are lucky he said. But I do not think that will be case.

recession in Europe &  United States.

Early next year

I dare say that at the beginning of 2023 At times we may face a clear recession in Europe &  United States.

She says it will not be because of the effects of the Corona epidemic resulting supply & demand disruptions (Ru-ssia) invasion of (Uk-raine) food shortages or rising energy prices but if the Australian economy I would say that this will basically end trend of economic growth created by the fictitious expansion of the economy by the governments. This will end quickly and a fall in productivity will lead to an economic crisis.

For now as summer approaches in the West I think the middle ground in economic arena will continue.

During this time people will also travel spend money & most people will enjoy the extra money that governments have-been giving people in days of the plague. But no party lasts forever just as no player can win every match with strength enhancing drugs.

At last  time will come when the situation will return to its place &  situation will be the same as it was before the government aid. Therefore it is not a good thing to turn a blind eye to reality & according to many economists  honest thing is that the world is going through a period of economic stagnation.

It is also true that at a time when US United States is making good returns on loans United States US  will be a more attractive market for investors from other countries.

economist economist & stock market

That is why it is important for us to see where the global investment is headed.

Maybe in the next few days of  year.

Lindsay Piagza principal economist & head of Styfel Financial says Federal Reserve has reaffirmed its commitment to controlling inflation raising interest rates by 7.5 percent in June & again in July. Probably a new addition of 0.57%.

Although President Joe Biden announced last week that  Federal Reserve is not taking steps to deliberately create a recession it looks like pace of growth will be negative by the end of this year or even worse. Will get worse

As  supply chain continues to deteriorate & US  United States continues to wage (w.a.r) beyond its borders the plight of American consumers is not diminishing & they continue to face rising inflation. & now that  Fed is raising interest rates to  proposed 4% it will have to support a slightly weaker economy.

In the event of a sharp rise in interest rates the average citizen will have to pay a heavy price & the United States US economy will have to pay the price & pressure on supplies will not be eased.

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After all an increase in  value of capital leads to a decrease in investment which in turn reduces the pressure on demand. This trend has already begun & is manifesting itself in declining product sales. But it will not be easy to overcome the effects of supply restrictions, especially at a time when  Corona epidemic is not over or the world is at( w'a'r).

economist economist & stock market

Maybe not.

According to Andreas Mr Moreno Jaramlu an economist economist & stock market analyst some economists believe that interest rates are rising that we are in a recession & that the cycle is about to return. There is no doubt that this is possible but if situation is not further aggravated by a war a shortage of goods or an increase in code there may not be a recession.

Nothing can be said yet. It is clear that US United States has taken a long time to raise its interest rates so that there is no recession. This interest rate can lead to a slight recession at a time when the economy is very hot.

Countries economies run in a cycle. Both interest rates and the recession are part of this circle but they do not become a threat unless there are sudden major fluctuations in the economy.

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I think a very bad time has passed & the US like all other countries is suffering from rising inflation. This inflation will slow down the economy to some extent even if the growth rate may be negative but this is not a bad thing at all.