'Great Depression' will hit the world next year, these figures are testifying!

Global Economy Recession: At present, economies around the world are going through a phase of slowdown. All measures to control inflation seem to be failing. Crude oil prices continue to rise. Food items are also becoming increasingly expensive and beyond the reach of the common man. Recently, the worse conditions of India's neighboring countries Sri Lanka and Pakistan are not hidden from anyone. In such a situation, it is expected that next year there will be a huge slowdown in all the economies of the world, which could be like a 'Great Depression'.

From the Federal Reserve in America to the Bank of England in Britain and the Reserve Bank of India in India, everyone continuously increased interest rates last year to control inflation. Due to this, inflation appeared to be softening in the figures, but it did not make much difference on the ground reality. On the contrary, this has increased the cost of capital in the market. Although in western countries inflation is at its peak and the situation is not improving much, the situation is a little better in India.

Meanwhile, both the Federal Reserve and the Bank of England have not reduced the interest rates, but have kept the possibility of increasing them further. At the same time, the Bank of Japan has reduced speculation about increasing interest rates in the near term, because the central bank of Japan will continue to work on taking very easy and encouraging steps to strengthen the economy. Nevertheless, a report by Bloomberg shows the latest trends of the global economy, which draws attention to the signs of a huge slowdown in the world economy next year.

Signs of slowdown visible in different economies

Signs of slowdown are visible in some of the world's biggest economies. Let's take a look and try to understand…

America: Federal Reserve Chairman Jerome Powell recently clearly said that the central bank will not increase interest rates any further. However, other officials of the bank made it clear that the cost of loan i.e. capital in the country will remain high for a long time. In such a situation, companies can consider other options to reduce staff and reduce costs. Not only this, an indication of this also comes from the hotel business of Las Vegas, America. Las Vegas hotels, which have learned the art of working with less staff during Covid, are now hiring less people even after 3 years, because the cost of labor is increasing. Whereas Las Vegas, America is a city where 1 in every 4 people works in the hospitality sector.

Europe: Britain's Bank of England has also stopped its work of increasing interest rates. Britain recently increased interest rates the fastest in the last three decades, so that inflation could be controlled. But due to this, signs of recession started appearing in the economy and finally it has been decided not to increase the interest rates further. Britain's real estate market is also witnessing a slowdown, a major reason for this is the highest increase in rental costs in the last decade.

China: After Covid, China's economy is continuously weakening, and there are no signs of improvement. Where its economic growth is expected to be around 5.1 percent in 2023. It is likely to come down to 4.6 percent next year. Its effect will also be visible on the entire world economy. According to the data of Organization for Economic Co-operation and Development (OECD), the growth rate of the world economy will be around 3 percent this year, which will slow down to 2.7 percent next year.

Rest of the world: Like the Federal Reserve and the Bank of England, the Swiss National Bank of Switzerland has also distanced itself from increasing interest rates. The effort is to control inflation, but it is also increasing the cost of capital in the market. Similarly, Turkey, Sweden and Norway have also increased interest rates, while interest rates in South Africa, Taiwan, Hong Kong, Egypt, Philippines, Indonesia and India remain stable.