Global Economic Crises

The World Bank report said that due to the Corona epidemic and the Ukraine war, there could be disruptions in the supply chain in America. Europe may have to bear the brunt of China's weak economy. 

You must have heard the news about the economic situation of big countries like America & China but you know that there are many countries which are facing economic crises since so many years and that are SIRIYA, LEBNON, AFGHANISTAN, IRAQ, VENEZUELA, SUDAN, LIBIYA, YEMAN,  PAKISTAN, SRILNKA, BELARUS, TURKEY, EGYPT etc.  Still many coutries of Europe and Latin America will join this

Some of these countries are on the verge of bankruptcy or some have already. But now, many middle-income countries are falling into debt traps. 

In the year 2023, the world economy may face recession. The World Bank has said in its report that the global economy will remain close to recession in the current year due to the decline in the growth rate of all major and leading economies America, Europe and China. The World Bank said in its annual report that it has reduced the global growth rate for 2023 to 1.7 percent, which used to be 3 percent earlier. 

In simple language I can say that a recession is a significant, widespread, and prolonged downturn in economic activity. A common rule of thumb is that two consecutive quarters of negative gross domestic product (GDP) growth mean recession. 

Ultimately, either it may a small business, corporate company or a country, it run by only humans. As corporations and households get over-extended and face difficulties in meeting their debt obligations, they reduce investment and consumption, which in turn leads to a decrease in economic activity. Not all such credit booms end up in recessions, but when they do, these recessions are often more costly than others. 

But don't forget that the opportunity that lies in every crises, certainly applies to today's India.