.png "Have all countries fallen into recession? | How is inflation affecting the world in the US?")
Have all countries fallen into recession?
The whole world is facing the threat of the Great Depression at this time. The economic condition of other big countries is staggering.
Inflation in the US has reached a 41-year high. Europe has also been no
exception from this recession. The people of India are also struggling with
inflation. In such a situation, big countries of the world are raising interest
rates to control inflation. Its direct effect is visible on the growth.
Steps being taken to absorb cash to control inflation have
slowed the pace of growth. This is the reason why big agencies of the world are
showing signs of recession at this time. Some of the effects of the recession
are starting to show. Let's start with Europe. Statistics from Europe's auto
sector show that people there are now avoiding buying cars.
According to the news of Reuters, the sale of cars in Europe in June this year was
the lowest since 1996. In June, just over one million vehicles were sold in the
European markets. Many car companies included in the European Automobile Manufacturer Association believe
their sales have dropped by as much as 50%. Europe's leading car company
Volkswagen, which sells cars under different brand names, has suffered the most
in terms of sales. Compared to June last year, the company's car sales have
decreased by a quarter.
At the same time, the loss of many companies selling
vehicles on a limited basis has been very high. Volvo's new vehicle
registrations fell by 47.9% in June. The Jaguar Land Rover Group's sales have
fallen by 13.2% in June. Rapidly rising inflation is presenting car
manufacturing. There is a problem with the supply chain. Auto sales are falling
continuously due to long waiting periods and a shortage of chips.
There has been a decrease in the sales of cars in the last
12 months. Car sales fell in all four major European markets, Spain, Italy,
Germany, and France. Falling auto sales cannot be considered a sign of
recession, but still, falling car sales are a bad indicator for the economy
because the auto sector employs millions of people in the world.
Now let's talk about America. The situation in America is
also not good. Car sales in the US have been falling for the past 12 months.
BMW sales in the US fell by 18.3% in June. Rolls sales fell by 3.9%, General
Motors sales fell by 15.4%. Hyundai and Kia sales fell 19.1%, while Jaguar Land
Rover sales fell 51.9%. The same Ford Motor has registered a growth of 1.8% in
sales.
Overall, the situation in America is also not good. Anyway,
America has been battling inflation since the Corona period. Their inflation
has reached a year high. Retail inflation in the US was recorded at 9.1% in
June. Inflation has also put brakes on US growth. Because of this, the Bank of
America has predicted a recession in America in the second half of this year.
US GDP growth maybe -0.5% in the third quarter. Growth is
expected to be -2% in the fourth quarter and -0.5% in the first quarter of next
year. Overall, Banks of America's projections prove that America is going to be
in recession. Earlier, many other agencies have also cut the forecast of
recession in America. At the same time, the situation in China is not looking
good.
Since April, limits have been imposed on withdrawing money
from banks in China. Now the banks are facing the danger of bankruptcy. Chinese
people have also demonstrated on the streets against the ban on the withdrawal
of money in banks. Big real estate companies have refused to pay the EMI of the
loan in China.
At the same time, China's second-quarter GDP growth figures have
also come much lower than expected. GDP growth in China was 0.4% in the April-June quarter,
compared to the estimate of 1%. Overall, looking at the condition of the
economy of China, Europe, and America, it can be said that the great depression
is about to come in the world.
How is inflation affecting the world in America?
All is not well in America these days. The shadow of
recession is looming over the US economy these days. In America, the common man
has been hit the worst by inflation. After Corona, the effect of inflation in
America has reached its highest level in the current year. Inflation reached
9.1%in the month of June, while the inflation rate in May is 8.7%, the highest
inflation recorded in the US since December 1981.
Inflation has increased due to an increase in food prices,
expensive oil gas, and a huge jump in house rent. Home rentals in the US have
increased by 5.7% in the past year. Prices of new cars have increased by 1 to
4%. Airplanes have increased by 14%. Dental service has seen an increase of
1.9%. Apart from this, the prices of houses and home loan rates have also
increased rapidly.
Because of rising inflation in America, the fear of
recession has deepened there. Bank of America has also predicted a recession in
America. In the third quarter, US GDP growth may be minus 0.5%. Growth is
expected to be minus 2.9 in the fourth quarter and minus 0.5% in the first
quarter of next year. Overall, the estimates of Bank of America prove that
America is going to be in the grip of recession.
Earlier, many other agencies have also expressed fears of a
recession in America. On the other hand, US President Joe Biden is finding
inflation figures not realistic. Biden says that inflation figures are based on
old rates. These figures do not include new gas prices. Gas prices were down 40
cents on June 15. Apart from this, the prices of wheat have also softened.
The inflation data for July may show the effect of falling
prices of essential commodities. On the other hand, despite the increase in the
interest rates of the fed, inflation is not coming under control. Now because
of the scary figures of June inflation, it is believed that the fed reserve may
once again increase the interest rates by 75 basis points.
If the fed increases
the interest rates further, then it can prove to be dangerous for the Indian
stock market, because as soon as the interest rates increase, foreign investors
will be able to withdraw money from the Indian market faster. On the other hand, the withdrawal of money by foreign
investors will further weaken the Indian rupee against the dollar. Right now
the price of one dollar is close to ₹ 80, which is the lowest level of the
rupee against the dollar. This will make imports from the US costlier. Apart
from this, the Indian companies that do business in America will also have a
negative impact.
Overall, record inflation in America seems to be taking a
toll on the whole world. At this time, not only in America but the big
countries of the whole world are seen suffering from the impact of inflation.
We hope you like the information about inflation all over the world. If you
have any questions, please comment on our site www.tradeipohub.co.in. Thanks
for reading.
.png "Have all countries fallen into recession? | How is inflation affecting the world in the US?")
Have all countries fallen into recession?
The whole world is facing the threat of the Great Depression at this time. The economic condition of other big countries is staggering.
Inflation in the US has reached a 41-year high. Europe has also been no
exception from this recession. The people of India are also struggling with
inflation. In such a situation, big countries of the world are raising interest
rates to control inflation. Its direct effect is visible on the growth.
Steps being taken to absorb cash to control inflation have
slowed the pace of growth. This is the reason why big agencies of the world are
showing signs of recession at this time. Some of the effects of the recession
are starting to show. Let's start with Europe. Statistics from Europe's auto
sector show that people there are now avoiding buying cars.
According to the news of Reuters, the sale of cars in Europe in June this year was
the lowest since 1996. In June, just over one million vehicles were sold in the
European markets. Many car companies included in the European Automobile Manufacturer Association believe
their sales have dropped by as much as 50%. Europe's leading car company
Volkswagen, which sells cars under different brand names, has suffered the most
in terms of sales. Compared to June last year, the company's car sales have
decreased by a quarter.
At the same time, the loss of many companies selling
vehicles on a limited basis has been very high. Volvo's new vehicle
registrations fell by 47.9% in June. The Jaguar Land Rover Group's sales have
fallen by 13.2% in June. Rapidly rising inflation is presenting car
manufacturing. There is a problem with the supply chain. Auto sales are falling
continuously due to long waiting periods and a shortage of chips.
There has been a decrease in the sales of cars in the last
12 months. Car sales fell in all four major European markets, Spain, Italy,
Germany, and France. Falling auto sales cannot be considered a sign of
recession, but still, falling car sales are a bad indicator for the economy
because the auto sector employs millions of people in the world.
Now let's talk about America. The situation in America is
also not good. Car sales in the US have been falling for the past 12 months.
BMW sales in the US fell by 18.3% in June. Rolls sales fell by 3.9%, General
Motors sales fell by 15.4%. Hyundai and Kia sales fell 19.1%, while Jaguar Land
Rover sales fell 51.9%. The same Ford Motor has registered a growth of 1.8% in
sales.
Overall, the situation in America is also not good. Anyway,
America has been battling inflation since the Corona period. Their inflation
has reached a year high. Retail inflation in the US was recorded at 9.1% in
June. Inflation has also put brakes on US growth. Because of this, the Bank of
America has predicted a recession in America in the second half of this year.
At the same time, China's second-quarter GDP growth figures have also come much lower than expected. GDP growth in China was 0.4% in the April-June quarter, compared to the estimate of 1%. Overall, looking at the condition of the economy of China, Europe, and America, it can be said that the great depression is about to come in the world.
How is inflation affecting the world in America?
All is not well in America these days. The shadow of
recession is looming over the US economy these days. In America, the common man
has been hit the worst by inflation. After Corona, the effect of inflation in
America has reached its highest level in the current year. Inflation reached
9.1%in the month of June, while the inflation rate in May is 8.7%, the highest
inflation recorded in the US since December 1981.
Inflation has increased due to an increase in food prices,
expensive oil gas, and a huge jump in house rent. Home rentals in the US have
increased by 5.7% in the past year. Prices of new cars have increased by 1 to
4%. Airplanes have increased by 14%. Dental service has seen an increase of
1.9%. Apart from this, the prices of houses and home loan rates have also
increased rapidly.
Because of rising inflation in America, the fear of
recession has deepened there. Bank of America has also predicted a recession in
America. In the third quarter, US GDP growth may be minus 0.5%. Growth is
expected to be minus 2.9 in the fourth quarter and minus 0.5% in the first
quarter of next year. Overall, the estimates of Bank of America prove that
America is going to be in the grip of recession.
Earlier, many other agencies have also expressed fears of a
recession in America. On the other hand, US President Joe Biden is finding
inflation figures not realistic. Biden says that inflation figures are based on
old rates. These figures do not include new gas prices. Gas prices were down 40
cents on June 15. Apart from this, the prices of wheat have also softened.
The inflation data for July may show the effect of falling prices of essential commodities. On the other hand, despite the increase in the interest rates of the fed, inflation is not coming under control. Now because of the scary figures of June inflation, it is believed that the fed reserve may once again increase the interest rates by 75 basis points.
Overall, record inflation in America seems to be taking a toll on the whole world. At this time, not only in America but the big countries of the whole world are seen suffering from the impact of inflation. We hope you like the information about inflation all over the world. If you have any questions, please comment on our site www.tradeipohub.co.in. Thanks for reading.