look news india
USA Recession News : The US economic slowdown is having a huge impact on the technology sector around the world. According to recent reports, 1 lakh 30 thousand employees have lost their jobs worldwide so far this year. Big companies like Cisco, Intel, Microsoft have fired their employees. The worrying thing is that this series of layoffs does not seem to stop in the coming days.
Clouds of recession in America!
We can say this because the fears of recession in America have started increasing, due to which the global economy is in crisis. Apart from IT, it can also affect many sectors in India. Actually, some major economic indicators in America are pointing towards a recession. Unemployment claims also increased significantly from the low of January and the unemployment rate reached a three-year high of 4.3 percent in July. Apart from this, the manufacturing PMI fell to a 9-month low.
There are mixed signals in the US
Meanwhile, the US economy has also shown signs of recovery from recession, prominent among which are the GDP growth forecast for the July-September quarter rising from 2.6 percent to 2.9 percent, wage growth higher than the inflation rate and rising house prices, i.e. overall the US economy remains mixed, there are signs that it is difficult to say whether the economic weakness there will turn into a recession. Meanwhile, US stock markets witnessed extreme volatility due to fears of a possible recession. Market expectations have increased after the US Federal Reserve indicated interest rate cuts in September.
Many sectors of India will be affected!
But if the situation does not improve and the US economy goes into recession, India will also be affected, in which the fall in demand in the US can reduce Indian exports. The IT, pharma and textile sectors are heavily dependent on the US market. Apart from this, the economic slowdown will disrupt the global supply chain, making the situation more challenging for Indian exporters. Along with this, the recession in the US will reduce the confidence of investors around the world, which may reduce FDI in India. However, in such a situation, crude oil prices may fall which will be beneficial for India. In such a situation, domestic demand, large exports and strong financial position can definitely prevent India from going into recession.