Is the world heading towards a recession?
Given the current situation of the developed nations of the world, businesses across the world may collapse and see a greater downfall than ever. This will lead to great problems for India as well as we are dependent on China for huge imports, so shutting down Chinese factories will lead to an increase in prices in India for many cheap products as well.
The largest European economies falling due to gas cut-offs from Russia, amid the ongoing war, due to which the UK is experiencing 40-year high inflation of 9.9%.
Electricity prices have gone up by almost 100%.
The same thing might happen with India due to crude becoming more and more expensive.
Source: NIESR Analysis of Living Cost and Food Survey (LCF). Many experts recommend looking at the “yield curve”. The yield curve is the interest rate of bonds according to their maturity period.
Observing the past results of the curve whenever the short-term bonds result in higher interest than the long-term.
The current graph shows 2-year bond interest to higher than 10-year (US).
Although the Indian economy is very stable as compared to other big economies falling sharply (US- 28%, UK-20%.), whereas Indian markets fell only by 3%, the falling of these great economies could have a ripple effect on our economy as well.
India might see the worst recession ever, because of the depreciating rupee.
With inflation and crude touching the sky, the Feds have hiked the interest rates by 3.25%.
The US is the major export partner of India amounting to 16%-18% of our exports so, technically, a recession in the US will lead to a recession in India...