Global Recession -2020
Global Recession -2020
#let's talk about economy.
GDP-Gross Domestic Product.
What is Actually a GDP?
Often you have heard around the economic losses that a Country's suffer is due to the downfall of it's GDP, Now GDP in detail is the income of a country at an average of all the Domestic (own) Products imported to foreign countries and, it decides the growth market of a country. Commonly a country at a high GDP will offer a less taxation to the global companies to empower there business as a capital or a manufacturing unit. And whereas countries with Low GDP acquire a high taxation to run out of there losses and invest in international markets.
So, with out further discussion let's take up three words of world economy. Slowdown, Depression and Recession.
Slowdown: slowdown occurs in the country when The GDP growth rate is less than the expected expenditure of the Government over the Citizens.
Depression: Depression is the Positive Side of GDP of a Country but under the loss of the total economic expenditure of the Government over the citizens.
Recession: Recession is the period when the GDP of a Country turns out to be negative, such that The companies saved there capital in the Government's vault has to lay out, to pay it's own employees.
How does Recession occurs :
This is easy to understand in the today's scenario as a lot of companies are shut down due to Covid-19 pandemic, so the productivity rate of companies have certainty decreased up-to a large number. (It's a common understandable fact that even apple.inc is no more a 1 trillion dollar company anymore.) Actually a major portion of Continents are closed as lockdown periods, creating a huge industrial havoc to economy. Now let's think Practically, if you own a company , what all you need is atleast three major centers, they are
1)Manufacturer
2)transporter
3)Seller
Now, for a time being you hire 3 people to handle each one of your companies center, like wise, one handles manufacturing area, second one transports your good, and the third itself is a seller. If we think practically we cannot run a company without a manufacturer, each and every sector requires a manufacturing center to make there products , now as an example , in today's case most of the manufacturing plants are closed down due to large number of gatherings so almost 89% of global companies are shut down due to closing of there manufacturing unit, Now companies has to pay there employees every month, if a company is not able to pay salary then employees will leave, and it's again a huge loss, so to handle this situation, before you open own your company in any country you need to submit a percentage of your annual turn over to the government, in order to invest in Governments capital and also, This amount is your beneficiary, like if your company fails to earn profit from a country ,you can simply take that capital back, payout your employees and close your assets, This capital is also a tract, that you cannot cheat a Government and owe to all terms and conditions of Trading with them. So, if you are not able to payout to your employees you will ask for your shares of investment at Government's vault. This is what a recession is takes place , if companies starts taking out there capital of investment from governments share, then Countries GDP rate decreases and as a result it turns down To be in negative which means that now "The government lag's in total sum to help their own Government sectors and companies and help it's own citizens".Due to which sometimes companies often starts removing there own employees (as they can't payoff them so) and it increases the unemployment ratio in a country.
The last recession period :
The last global recession was observed in the year 2008. The recession occurred due to an overnight loss of an IT company called Satyam Computer services which had a loss of over 1.3 billion Dollars within a night as all investors stocked out there shares suddenly within a night and the next morning, the overlay of the company was fortified and Government declared it as a bankrupt. Since this, overnight loss was occurred within 6 hours of Market close. No one could even imagine such a global loss and hence this was termed as "Satyam Scandal". As the companies shares stock lagged down below 65%, all global investors released there sum assured money which was more than the whole capital and hence it became a major cause of loss to Global Supply chain management followed by severe Recession, Satyam Services was an Indian Private LTD. Organization , which created a global economic loss. The company created a huge hole in international markets too, which had a severe recession in USA and a serious Depression for nearly all the countries of Europe.
But this is not the only Global recession we all have seen, back in the year 1929, When India was not even free, The world suffered a huge economic loss for around nearly 10 years which is why the only cause of less development of African Regions and Countries.
The Global Recession -2020:
IMF- International Monetary Fund
And The International Monetary Bank has assumed that Due to the countries severly posting up lockdown Periods has again immigrated a loss of 19.69% of GDP growth rate Globally, it is assumed that either by the end of 2020, or 2021 There will be again a global Recession which would severly hit European Countries and Citizens out there cause of COVID-19 pandemic because most of the sectors are remained unworkable and also The work from home policy has certainly decreased the productivity rate of Many day to day working companies also.
Following are the list of Sectors which are severely affected due to LockDowns-
Railways, Airways , Restaurants, Education sector, Hotels and Tourism, Travel and Tourism (Local Tourism) , All IT sectors, All economic sectors (Including banks, Financial markets, international and national tradings, stock markets and so on).
Hospitality and Pharmacies, and other small scale industries too, many other Government earning sectors too like local bus transportation system, taxi and cab companies like ola,Uber have seen a severe Economic Downfall since lockdown periods have started.
#Preventive Measures by Different Governments of Different Countries:
So to avoid this economic loss many countries have incorporated a large sum of GDP itself as a relief fund to help out the citizens as well as companies to layout the losses and pay to there employees and Daily wage earners throughout the Countries.
1)USA- 11.5% of GDP- 243.96 billion US$
2)China - 6.8 % of GDP-185.83 billion US $
3)Germany-6.2% of GDP - 176.93 billion US$
4)France-5.6% of GDP -138.36 billion US$
5)Spain-4.9% of GDP -125.85 billion US$
6)Russia-4.5% of GDP- 100.00billionUS$
7)Greece-4.2% of GDP -92.5 billion US$
8)Britian-3.6% of GDP-78.63 billion US$
9)Brazil-3.5 % of GDP-65.25 billion US$
10)Switzerland-2.8% ofGDP- 50.55billionUS$
11)Australia-2.5% of GDP-38.58 billion US$
12)Singapore-1.0% of GDP -26.68 billion US$
13)India-0.8 % of GDP-17.26 billion US$
14)NewZealand-0.5% of GDP-11.6 billionUS$
Above mentioned countries statical data are mentioned as per IMF report released on 04th/April/2020.
Sectors that have made a remarkable Progress after lockdown-
Companies like Google Suite, Google Hangouts, Google Digital garage, Instagram, Google Classroom ,Facebook, Zoom,Ludo King, Tik-Tok ,Fiverr, Medium, Udemy, Coursera, UPgrad has seen a remarkable Progress in there stocks and shares since then the period of lock down started, people started using them vigorously, A separate informative article will be published for the same.
INDIA's Economic condition :
India's economic condition is neither too strong nor too weak, on the other side, India as a strong nation is suddenly emerged after the world is behind buying Hydroxychloroquinine medicine which is manufactured in India, It has somewhere strengthen the Indian Economy during this lockdown Period though, but a lot need to be done after the Lockdown to degrade the recession period in the country. Since Our Respected PM shri Narendar Modi , made his mindset clear in media, that he will always chose health over economy since then The GDP of the country sinked in wholesome in state of slowdown, The goverment has arranged a sum of 17.2 billion US $ around (17 Thousand crores in rupees) to fight with the upcoming economic crisis, many other billionaire industrialist have emerged to help the country by contributing into the Country's capital economy like Ratan ji (500 CR.) Ambani Group (500 CR.) , The Adani Group (500 CR.) , The Aditya Birla Group (500 CR.),
HDFC Bank (200 CR.) , Kotak Mahindra Bank (100 CR.) , Axis Bank (100 CR.) and a lot of Industries too.
#But the question comes how can company's contribute at the time of Recession -
As you see, the month of February and March is actually the change of Period from one financial year to the other, so company's have helped the government from the profits of the previous financial year and not this Financial year, that's why industries have promptly donated to the Government. (as per IMF report)
The IMF's word on Indian Economy -
Till now, IMF didn't surpasses any chances of Recession on INDIA, Since a lot of people have contributed to the economy suddenly with a huge amount, but still some economists believe that india will have to see a period of Recession as the world will suffer.
Things to be done inorder to secure the Recession period -
1)Investments and buying stocks of other companies and countries is a way strong solution.
2) Buying Shares and investing in trade marketing is an important aspect.
3)Applying investments in bank like RD, FD
Can help the bank to layoff there employees and also it will stake the banks capital too.
4)Purchase of Bitcoins, Trading in digital economy and marketing can even help out the Governments.
5) Helping the Government to fight the pandemic by Contributing to there funds can also save the Governments capital and also the country's economy.
Recession is that part of loss that occurs to each and every citizen of the country either directly or indirectly because the industry suffers. So, employees suffer and also if product isn't manufactured then, people also suffer.
Things you should do to make best use of Quarantine and help yourselves to strengthen your job and make side money -
1)Investments in Mutual Funds.
2)Buying stocks and shares of foreign companies which are suffering from loss.
3)Paid work from home jobs like freelanceing on Fiverr, upwork and so on.
4)Do Paid or unpaid Internship's (work from home) available on various online platforms. Like internshala, Indeed and so on.
5) Do new courses which help you out to fresh your skills and also learn something new, which will help you out to stake to your job profile. As companies if suffer recession will likely to be remove employees who are least skilled, so having new skills will upgrade yourselves to empowerment in your job.
6) Blogging and learn SEO to help out yourself in digital marketing and make monetize money out of it.
The above things will help you in making side business money in your homestay and also you can carry this as a side business.
The Advantages of Recession -
1)A lot of Billionaire companies evolve after the market is set to be relaxed.
2)It also helps a lot of people to create opportunity for new employment.
3)After the Recession period, The global Bussiness advances.
4)Countries with a high payout is the global Economic Leader.
5)The loss which is created in world bank brings opportunities for countries to increase there capital and GDP.
6)Which helps in improving there own Economy and also Stake of Investments occur.
Thank you for reading.!!!
#let's talk about economy.
GDP-Gross Domestic Product.
What is Actually a GDP?
Often you have heard around the economic losses that a Country's suffer is due to the downfall of it's GDP, Now GDP in detail is the income of a country at an average of all the Domestic (own) Products imported to foreign countries and, it decides the growth market of a country. Commonly a country at a high GDP will offer a less taxation to the global companies to empower there business as a capital or a manufacturing unit. And whereas countries with Low GDP acquire a high taxation to run out of there losses and invest in international markets.
So, with out further discussion let's take up three words of world economy. Slowdown, Depression and Recession.
Slowdown: slowdown occurs in the country when The GDP growth rate is less than the expected expenditure of the Government over the Citizens.
Depression: Depression is the Positive Side of GDP of a Country but under the loss of the total economic expenditure of the Government over the citizens.
Recession: Recession is the period when the GDP of a Country turns out to be negative, such that The companies saved there capital in the Government's vault has to lay out, to pay it's own employees.
How does Recession occurs :
This is easy to understand in the today's scenario as a lot of companies are shut down due to Covid-19 pandemic, so the productivity rate of companies have certainty decreased up-to a large number. (It's a common understandable fact that even apple.inc is no more a 1 trillion dollar company anymore.) Actually a major portion of Continents are closed as lockdown periods, creating a huge industrial havoc to economy. Now let's think Practically, if you own a company , what all you need is atleast three major centers, they are
1)Manufacturer
2)transporter
3)Seller
Now, for a time being you hire 3 people to handle each one of your companies center, like wise, one handles manufacturing area, second one transports your good, and the third itself is a seller. If we think practically we cannot run a company without a manufacturer, each and every sector requires a manufacturing center to make there products , now as an example , in today's case most of the manufacturing plants are closed down due to large number of gatherings so almost 89% of global companies are shut down due to closing of there manufacturing unit, Now companies has to pay there employees every month, if a company is not able to pay salary then employees will leave, and it's again a huge loss, so to handle this situation, before you open own your company in any country you need to submit a percentage of your annual turn over to the government, in order to invest in Governments capital and also, This amount is your beneficiary, like if your company fails to earn profit from a country ,you can simply take that capital back, payout your employees and close your assets, This capital is also a tract, that you cannot cheat a Government and owe to all terms and conditions of Trading with them. So, if you are not able to payout to your employees you will ask for your shares of investment at Government's vault. This is what a recession is takes place , if companies starts taking out there capital of investment from governments share, then Countries GDP rate decreases and as a result it turns down To be in negative which means that now "The government lag's in total sum to help their own Government sectors and companies and help it's own citizens".Due to which sometimes companies often starts removing there own employees (as they can't payoff them so) and it increases the unemployment ratio in a country.
The last recession period :
The last global recession was observed in the year 2008. The recession occurred due to an overnight loss of an IT company called Satyam Computer services which had a loss of over 1.3 billion Dollars within a night as all investors stocked out there shares suddenly within a night and the next morning, the overlay of the company was fortified and Government declared it as a bankrupt. Since this, overnight loss was occurred within 6 hours of Market close. No one could even imagine such a global loss and hence this was termed as "Satyam Scandal". As the companies shares stock lagged down below 65%, all global investors released there sum assured money which was more than the whole capital and hence it became a major cause of loss to Global Supply chain management followed by severe Recession, Satyam Services was an Indian Private LTD. Organization , which created a global economic loss. The company created a huge hole in international markets too, which had a severe recession in USA and a serious Depression for nearly all the countries of Europe.
But this is not the only Global recession we all have seen, back in the year 1929, When India was not even free, The world suffered a huge economic loss for around nearly 10 years which is why the only cause of less development of African Regions and Countries.
The Global Recession -2020:
IMF- International Monetary Fund
And The International Monetary Bank has assumed that Due to the countries severly posting up lockdown Periods has again immigrated a loss of 19.69% of GDP growth rate Globally, it is assumed that either by the end of 2020, or 2021 There will be again a global Recession which would severly hit European Countries and Citizens out there cause of COVID-19 pandemic because most of the sectors are remained unworkable and also The work from home policy has certainly decreased the productivity rate of Many day to day working companies also.
Following are the list of Sectors which are severely affected due to LockDowns-
Railways, Airways , Restaurants, Education sector, Hotels and Tourism, Travel and Tourism (Local Tourism) , All IT sectors, All economic sectors (Including banks, Financial markets, international and national tradings, stock markets and so on).
Hospitality and Pharmacies, and other small scale industries too, many other Government earning sectors too like local bus transportation system, taxi and cab companies like ola,Uber have seen a severe Economic Downfall since lockdown periods have started.
#Preventive Measures by Different Governments of Different Countries:
So to avoid this economic loss many countries have incorporated a large sum of GDP itself as a relief fund to help out the citizens as well as companies to layout the losses and pay to there employees and Daily wage earners throughout the Countries.
1)USA- 11.5% of GDP- 243.96 billion US$
2)China - 6.8 % of GDP-185.83 billion US $
3)Germany-6.2% of GDP - 176.93 billion US$
4)France-5.6% of GDP -138.36 billion US$
5)Spain-4.9% of GDP -125.85 billion US$
6)Russia-4.5% of GDP- 100.00billionUS$
7)Greece-4.2% of GDP -92.5 billion US$
8)Britian-3.6% of GDP-78.63 billion US$
9)Brazil-3.5 % of GDP-65.25 billion US$
10)Switzerland-2.8% ofGDP- 50.55billionUS$
11)Australia-2.5% of GDP-38.58 billion US$
12)Singapore-1.0% of GDP -26.68 billion US$
13)India-0.8 % of GDP-17.26 billion US$
14)NewZealand-0.5% of GDP-11.6 billionUS$
Above mentioned countries statical data are mentioned as per IMF report released on 04th/April/2020.
Sectors that have made a remarkable Progress after lockdown-
Companies like Google Suite, Google Hangouts, Google Digital garage, Instagram, Google Classroom ,Facebook, Zoom,Ludo King, Tik-Tok ,Fiverr, Medium, Udemy, Coursera, UPgrad has seen a remarkable Progress in there stocks and shares since then the period of lock down started, people started using them vigorously, A separate informative article will be published for the same.
INDIA's Economic condition :
India's economic condition is neither too strong nor too weak, on the other side, India as a strong nation is suddenly emerged after the world is behind buying Hydroxychloroquinine medicine which is manufactured in India, It has somewhere strengthen the Indian Economy during this lockdown Period though, but a lot need to be done after the Lockdown to degrade the recession period in the country. Since Our Respected PM shri Narendar Modi , made his mindset clear in media, that he will always chose health over economy since then The GDP of the country sinked in wholesome in state of slowdown, The goverment has arranged a sum of 17.2 billion US $ around (17 Thousand crores in rupees) to fight with the upcoming economic crisis, many other billionaire industrialist have emerged to help the country by contributing into the Country's capital economy like Ratan ji (500 CR.) Ambani Group (500 CR.) , The Adani Group (500 CR.) , The Aditya Birla Group (500 CR.),
HDFC Bank (200 CR.) , Kotak Mahindra Bank (100 CR.) , Axis Bank (100 CR.) and a lot of Industries too.
#But the question comes how can company's contribute at the time of Recession -
As you see, the month of February and March is actually the change of Period from one financial year to the other, so company's have helped the government from the profits of the previous financial year and not this Financial year, that's why industries have promptly donated to the Government. (as per IMF report)
The IMF's word on Indian Economy -
Till now, IMF didn't surpasses any chances of Recession on INDIA, Since a lot of people have contributed to the economy suddenly with a huge amount, but still some economists believe that india will have to see a period of Recession as the world will suffer.
Things to be done inorder to secure the Recession period -
1)Investments and buying stocks of other companies and countries is a way strong solution.
2) Buying Shares and investing in trade marketing is an important aspect.
3)Applying investments in bank like RD, FD
Can help the bank to layoff there employees and also it will stake the banks capital too.
4)Purchase of Bitcoins, Trading in digital economy and marketing can even help out the Governments.
5) Helping the Government to fight the pandemic by Contributing to there funds can also save the Governments capital and also the country's economy.
Recession is that part of loss that occurs to each and every citizen of the country either directly or indirectly because the industry suffers. So, employees suffer and also if product isn't manufactured then, people also suffer.
Things you should do to make best use of Quarantine and help yourselves to strengthen your job and make side money -
1)Investments in Mutual Funds.
2)Buying stocks and shares of foreign companies which are suffering from loss.
3)Paid work from home jobs like freelanceing on Fiverr, upwork and so on.
4)Do Paid or unpaid Internship's (work from home) available on various online platforms. Like internshala, Indeed and so on.
5) Do new courses which help you out to fresh your skills and also learn something new, which will help you out to stake to your job profile. As companies if suffer recession will likely to be remove employees who are least skilled, so having new skills will upgrade yourselves to empowerment in your job.
6) Blogging and learn SEO to help out yourself in digital marketing and make monetize money out of it.
The above things will help you in making side business money in your homestay and also you can carry this as a side business.
The Advantages of Recession -
1)A lot of Billionaire companies evolve after the market is set to be relaxed.
2)It also helps a lot of people to create opportunity for new employment.
3)After the Recession period, The global Bussiness advances.
4)Countries with a high payout is the global Economic Leader.
5)The loss which is created in world bank brings opportunities for countries to increase there capital and GDP.
6)Which helps in improving there own Economy and also Stake of Investments occur.
Thank you for reading.!!!
👏👏
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