America has the largest economy in the world. Their currency is the driving force of the world economy. When any country in various parts of the world is in danger, America helps financially. But this “banyan tree” of the world economy is also endangered. A dark cloud of recession has appeared in the American sky. Several internal problems in the country have worried economic experts.
Experts believe that a recession may soon engulf the US market, although not on such a large scale. According to the report of the media outlet “Fox Business,” Peter Berezin, the head of “BCA Research,” warned that a recession may occur in the United States at the end of this year or at the beginning of 2025. Peter also expressed concern about rising unemployment, stock market slumps, massive economic losses, and slowing growth in the economies of Europe and China.
What is an economic recession? Experts and economists fear a recession if GDP declines in two consecutive quarters of the fiscal year. The National Bureau of Economic Research defines a recession as a significant decline in economic activity in a country. The Federal Open Market Committee, the policy-making body of the US central bank, the Federal Reserve, estimated in June that the country’s economic growth could be only 1 percent in the 2024–25 fiscal year.
The Fed has raised interest rates four times in 2023, which has pulled down the stock market in various countries, including America. As well as estimates, economic growth for many American companies may also slow this year. According to Forbes, at least one indication from 2022 points to an impending financial recession in America.
According to the survey, the employment situation in America is not very good either. America’s unemployment rate is historically low, at just 3.8 percent. According to media reports, the consumer price index increased marginally. Strikes have also become one of the government’s headaches in America. The scope of the strike gradually increased. As a result, the news that a big place of trust in the American economy has become shaky.
With America being the world’s largest economy, any recession there can have an impact on other countries, including India. Problems like price rises and inflation will be evident everywhere. Overall, the world economy will move towards recession. Therefore, experts are paying special attention to the dynamics of the American economy.
