After China, Britain’s economy is now under pressure, the country’s GDP also fell, the risk of economic recession increased.

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Global Recession 2024: The whole world is troubled due to the slowing economy. China’s condition in Asia is said to be very bad. According to the data released by the National Bureau of Statistics (NBS), a situation of deflation has arisen in China. At the same time, another matter of concern is coming to the fore. According to data released by Britain, the country’s economy shrank in October, increasing the risk of recession. The National Statistics Office said that the gross domestic product (GDP) has declined by 0.3 percent since September. Also, it has been said that extraordinary weather has affected the data. This was the first time since July that GDP has shrunk on a month-on-month basis. Sterling fell by almost a third of a cent against the US dollar and is also weaker against the euro. Bet on BOE starting interest rate cuts in June 2024. At the same time, the yield on 10-year British government bonds fell to the lowest since May. However, the central bank is widely expected to keep the bank rate at 5.25% on Thursday.

Recession is known from statistics: Paul

Paul Dales, chief economist at UK Capital Economics, said the October data suggests Britain may be in recession. He said this could take the BOE closer to cutting rates. However, while leaving rates at 5.25% tomorrow, the bank will probably push back the idea of ​​a rate cut in the near term. At the same time, according to Paul Dietrich, chief investment strategist of Brilly Wealth, America may also be hit by a serious recession in the beginning of 2024 because some signs of recession are visible in the entire economy. The Fed usually starts cutting rates when the economy is in sharp decline and unemployment is rising – which simply means a recession. Paul Dietrich says that signs of recession have started forming. He said the stock market’s 20% rise this year is a warning sign, as the S&P 500 has typically posted larger gains in recession months. This was the case before the recessions of 2001, 2008 and 2020, when stocks rose rapidly before the economy started contracting.

What is economic recession?

Economic recession is an economic term that refers to a state of economic slowness for a particular region, sector, or social segment. It may be a periodic phenomenon in which there is a slowdown in markets, employment, production, and other economic sectors. Economic recession can occur due to various reasons, such as economic conditions, job loss, market-wide unrest, and other economic factors. Its impact can be felt in the prosperity, production, and employment sectors and can also affect the economic condition of the people. It can be of many types.

• market recession

  A market recession or slowdown in the market means that there is a decrease in demand for products and services and this results in a decline in the prices of products and services. This may indicate a decrease in market conditions and problems in the economic situation.

• Investment and financial recession

  The slowdown in investment and financial slowdown means that investors and financial institutions are suffering losses due to the decline in the respective financial markets. This may include stock market, commodity market, and currency market.

• employment recession

  A slowdown in employment recession means that people are lacking jobs and this can create problems in the economic situation.

• production slowdown

  A slowdown in production recession means that the production level of products and services is decreasing and this can affect the prices of the products.

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