US President Donald Trump's customs policy has collapsed in the worldwide stock markets. But is this collapse bearing the hint of the imminent global recession?
Experts are first warning – the fall of the market and the economic downturn is not one thing. However, sometimes the big stock market collapses the coming recession.
In the current situation, the evaluation of investors with the future profit of companies worldwide has changed drastically. The decision to increase Trump's tariff has raised the possibility of increasing production costs and decreasing profits.
An economy is called a recession when the GDP is compressed in two quarters drawn. In October-December last year, the UK's economy increased by only 5.5 percent, and the same amount was narrowed in January.
The bank sector is seen as an economy barometer. The share price of HSBC and Standard Chartered fell by more than 5 percent. The price of copper and oil is an indicator of the global economy. After Trump's tariff announcement, the price has dropped by more than 5 percent. According to Goldman Sax forecasts, the US downturn has increased by 5 to 5 percent in the next 12 months.
There is also some good news for the UK Finance Minister Rachel Reeves. Increasing investment in government bonds can reduce the loan cost of the government by 3-5 billion a year. However, experts have warned that this benefit will not be due to reduced tax revenue if the economy is narrowed.
Examples of true global recession are very few. However, the monastery of the 9th, the financial crisis of 20 and the economic crisis of the Covid epidemic were intense.
Analysts say that the level of downturn is low this time, but the risk of recession in the United States, the United Kingdom and the European Union has increased significantly.
Source: BBC
