The document discusses the impacts of a global recession. It defines a global recession according to the IMF as global growth falling below a certain threshold. During a recession, capital investment and consumer spending decline. A global recession can negatively impact stock markets, jobs availability, companies' downsizing, perks/salaries, demand for goods/services, and production/consumption levels globally and in India. Governments and companies have taken steps like lowering interest rates, increasing liquidity, freezing hiring and reducing perks to curb the problems caused by the recession. The recession can affect many groups including stock/forex markets, consumption, investment, government spending, exports/imports, financial institutions, corporations, stock investors, and workers.
The document discusses the impacts of a global recession. It defines a global recession according to the IMF as global growth falling below a certain threshold. During a recession, capital investment and consumer spending decline. A global recession can negatively impact stock markets, jobs availability, companies' downsizing, perks/salaries, demand for goods/services, and production/consumption levels globally and in India. Governments and companies have taken steps like lowering interest rates, increasing liquidity, freezing hiring and reducing perks to curb the problems caused by the recession. The recession can affect many groups including stock/forex markets, consumption, investment, government spending, exports/imports, financial institutions, corporations, stock investors, and workers.
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The document discusses the impacts of a global recession. It defines a global recession according to the IMF as global growth falling below a certain threshold. During a recession, capital investment and consumer spending decline. A global recession can negatively impact stock markets, jobs availability, companies' downsizing, perks/salaries, demand for goods/services, and production/consumption levels globally and in India. Governments and companies have taken steps like lowering interest rates, increasing liquidity, freezing hiring and reducing perks to curb the problems caused by the recession. The recession can affect many groups including stock/forex markets, consumption, investment, government spending, exports/imports, financial institutions, corporations, stock investors, and workers.
Direitos autorais:
Attribution Non-Commercial (BY-NC)
Formatos disponíveis
Baixe no formato PPT, PDF, TXT ou leia online no Scribd
provided by the International Monetary Fund (IMF). It considers a global recession to be occurring when the global growth rate moves below .The IMF "takes many factors into account," not just growth. Both capital investment and consumer spending decline during recession. IMPACT OF RECESSION 1. Falling stock market 2. Recession in jobs availability 3. Companies following downsizing in the existing available staff 4. Cutting down of the perks and salary corrections. 5. Reducing the demand for goods and services and 6. Declining level of production and consumption. Impact of Global Recession on Indian Market 1. In the globalized market scenario, the impact of recession at one place/ industry/ sector peculate down to all the linked industry and this can be truly interpreted from the current market situation 2. The badly hit sector at present is being the financial sector, and major issue being the "LIQUIDITY Crises" in the market. 3. In-spite of the various measures to subsidies the impact of the recession and cut down the inflation present nothing really sound have been done. STEPS TAKEN BY GOVERNMENT TO CURB THIS PROBLEM 1. The sudden drying-up of capital inflows from the FDI which were invested in Indian stock markets 2. The current step to curb these being lowering of interest rates and reduction of PLR 3. RBI will continue to initiate liquidity measures as long as the current unusually tight domestic liquidity environment prevails. STEPS TAKEN BY COMPANIES 1. Freezing the recruitment. No new hiring. 2. Fresh graduates or those who are new to the market will find it difficult to get a job. 3. Last in, First Out. 4. Average performers or difficult employee will also be shown the door. WHAT MORE TO EXPECT? • Training and Development programs to freeze. • Perks, benefits and retention allowances to be withdrawn • Bonuses and incentives to be stopped. • Specialists are out and generalists are in. WHO IS AFFECTED ? 1. Stock and FOREX markets, 2. Consumption, 3. Investment and savings, 4. Government spending, 5. Exports and imports. 6. Financial institutions, 7. Corporate sector, CONTD. 8. Stock market investors, 9. Housing market, 10. Under 30s, pension or superannuation funds, 11. Workers 12. Retirees, Exporters, 13. Importers 14. Consumers is considered and evaluated. PREVENTION 1. Governing bodies and/or regulators should be more vigil on the purchase power of common public. 2. They should be more supportive, 3. Both for helping more people to attain purchasing power and 4. For retaining the purchasing power once it is reached. CONTD. 5. By automatic acquisition of a fixed percentage of shares of profit making institutions, 6. This can be either by social security measures, or 7. If it controls a considerable meaningful amount of assets to the financial system, specifically for generating more jobs and supporting individuals with income below some bench marks. CONTD. 8. The governing bodies should invest in the customers than investing in the producers/suppliers. 9. So the immediate action of the states/authorities is to enable more people with financial security and thus providing them a mind set to involve in more purchases 10. We need to develop some mechanisms to automatic restructuring of markets (without war/armed conflicts) to avoid job cuts and related miseries.