Recent news of the UK and Japan entering into recession has drawn the attention of many experts about the possibilities of the global business downfall in 2024. The US and major European countries are just an inch away from recession.
Cause of the global business downfall:-
Lack of demand from people due to unemployment and a decrease in their income level.After the coronavirus pandemic impact and the Russia-Ukraine war situation worsened. Now the Hamas-Israel war is also denting economies. Also, trade wars among major economies like the US and China have severely impacted business in the world. The slowdown in Chinese economies may derail the recovery of global economies.
Impact of the global business downfall:-
It has a multifaceted impact on people. The world recession has caused the loss of jobs for many people. Big IT giants like Google, Amazon, and Microsoft employers cutting jobs. It is impacting the well-being of people causing mental health issues. It also causes a shock in demand hurting business. It can trigger a vicious cycle in which many countries get trapped. Less demand can lead to shrinking in businesses resulting in layoffs by companies.
The way forward:-
An inclusive policy by the government can be a good decision. Sustainable practices and prudent fiscal measures can be a game changer in combating recession. The world needs peace for fulfilling the dreams of people. War can only cause destruction not only in terms of economy but also trust deficit towards its government. It’s a jolt to democracy and in the long term, it will promote dictatorship. Providing special packages to an economic sector like MSME and tourism can improve the fiscal health of the company. Investing in R&D can also be beneficial in the long term. It will increase business efficiency and thus make them profitable.