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Can the world economic recession come in the year 2023

 Why world economic recession can come in the year of 2023:

Whenever there is a recession in the world, its worst effect is on the stock market investors because the fluctuations in the stock markets increase a lot and investors lose their money. In such a situation, whenever there are signs of recession in the world economy, traders and investors of the stock market should be alerted. Today we will tell the viewers of our website that can there be a economic recession in the world in the year 2023? What are the signs of coming recession in the world economy?

Signs of slowdown in China's economy:

China is a country which is known for its good economic growth in the world, but ever since Covid 19 has spread in the world, China has also become famous for this, although no concrete evidence of the origin of Covid 19 has been found so far. India is considered to be the biggest competitor of China and one thing India has proved in the last few years as the Indian economy has shown good growth as soon as it comes out of the Kovid 19 era. On the other hand, countries like China have registered the biggest decline in the economic growth rate in the last 40 years. Let us tell you that during the year 2022, China's economy growth rate has registered a decline of more than 3%.

According to media reports, a decline of about 2% in retail sales in China was registered in December compared to a year ago, but improving these figures, there has also been an improvement of 5.9% last month. In the year 2022, Industrial Production has been increasing by about 3.5% as compared to the previous year, but has declined by about 5% in the third quarter of the year, the biggest reason for this is the increase in the interest rate in the US and European countries. It is understood that due to which weakness has been registered in the demand for Chinese goods.

Let us also tell you that the slowdown in China's real estate sector is being considered as the reason for China's economic crisis. On the other hand, due to the zero covid policy, millions of people were forced to stay indoors due to the lockdown, although due to heavy protests by the residents of China, the Chinese government had to relax the covid restrictions. Fell Due to this, there is some movement in the economic activities of China.

Are there signs of slowdown in the IT sector?

The retrenchment of employees in the IT sector is also indicating the impending recession in the world economy. According to media reports, Microsoft IT sector veteran company is going to cut jobs. The Microsoft Company is indicating to reduce the jobs of about 5 percent of its work force.

If according to the news quoting US's Sky News, around 10,000 people may have to lose their jobs. Apart from this, thousands of job cuts are also being expected in engineering and human resource departments. Many well-known companies, including Amazon.com and Meta Platforms, among the largest companies in the world, are showing signs of slowing down growth and the announcement of job cuts amid the deteriorating global economic environment cannot be ignored.

According to the report, Microsoft had approximately 221,000 full-time employees. Of these, 99,000 were internationally and about 122,000 in the USA. One of the reasons for retrenchment in this company is also understood to be the low growth in the personal computer market for several quarters, due to which the business of Microsoft company is running slow because the low sales of Windows and other new devices is considered to be the biggest reason for this. That's why Microsoft is focusing on its cloud unit Azure. According to some media reports, Microsoft has even shut down many departments with less than 1,000 employees.

If we have listened and understood the business news carefully last few months ago, then we should know that CEO Satya Nadella had earlier warned of a slowdown in the IT sector.

Due to this, the company has also announced job cuts. One of the main reasons for this is also believed to be the technological changes taking place around the world, which is also affecting the Microsoft company. If Microsoft company CEO Satya Nadella understands the statements made, then according to him the next two years are probably going to be the most challenging.

Will the world economic recession affect the Indian economy?

If there is recession in the world market, will its effect be seen on the economy of India or not? This question comes in everyone's mind, but if we think with our mind, then the answer is very simple. If there is a slowdown in the world economy, then India's economy cannot remain untouched by it. That's why the intellectuals who say that there will be no impact on India's economy in the world economy, we do not see any agreement with such intellectuals.

There is no doubt that the future of India's economy is bright, but at this time the problems going on in the world cannot be ignored, such as the running market in the US and China's economy and the ongoing war between Russia and Ukraine. . We have already got the signs of slowdown in the IT sector. If the Fed increases the rate of interest further, it will give further impetus to the world recession. Elections are going to be held in the coming few months in India too, this event will be considered as the biggest event and its effect can already be seen in the Indian stock market. The BJP government can also take some big decisions due to events like the elections to be held in 2024, but there may be a delay in taking some decisions covering the world economy.

In Nutshell, We have already alerted the visitors of our website that the year 2023 has not brought very good signs for the Indian Stock Market and the Stock Markets of the World. Firstly, the world markets and Indian stock market are already trading at higher valuations and on top of that there is a danger of recession in the world economy. That's why investors of India stock market need to be alert. Whenever the world markets trade at higher valuations, even a small piece of bad news can have a huge negative impact on the world markets. We all know how the signs of world recession will affect the Indian stock market and the stock market of the world. So don't forget to lock in your profits and keep checking your portfolio.

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