The world is heading towards a global recession way worse than the 2008 financial crisis. Nearly $90 billion investment have already flown out of Emerging Markets.
“It is clear now that we have entered a recession as bad or worse than 2009. We do project recovery in 2020. In fact, there may be a sizable rebound.
But only if we succeed containing the virus everywhere and prevent liquidity problems from becoming a solvency issue”, statement made by Kristalina Georgieva, Managing Director, International Monetary Fund(IMF) in a meeting with G-20 leaders.
The United Nations(UN) predicted in April 2020 that Global unemployment will wipe out 6.7 percent of working hours globally in the second quarter of 2020 which is equivalent to 195 million full-time workers.
The covid-19 pandemic is the ongoing pandemic in the world. It has had far-reaching consequences beyond the spread of the disease. It is the major factor in causing the recession.
Pandemic has affected nearly every major industry negatively. It has also led to the stock market crash.
The lockdowns across the world led to temporary shutdown of business, which has affected the GDP negatively and also has affected the earnings of many employees. Only the businesses that could run by work from home could survive the hit at some extent.
Russia-Saudi Arabia oil price War
The Russia-Saudi Arabia oil price war was not the major cause of the recession, but it has worsened the recession due to the crashing of the prices of oil.
• The tips to survive the Recession.
The recession will lead to high unemployment all over the world.
It will hit in the next few months. It is better to know how to safeguard yourself.
1. Upskill yourself or learn a new skill.
The whole market is going to get affected due to the recession.
So upskill your skill according to the companies which are going to be affected less. The sectors which were earning even in the lockdown are ones safer than the others. Upskill your skills accordingly.
For e.g.: Tech companies
2. Save your money.
As the world experienced a lockdown of a few months and now it is opening up, so we don’t need to spend unnecessarily.
Save money for next 6 to 8 months as much as possible. This will help if you are unemployed (keeping in mind the worst circumstances).
3. Switch to recession-proof companies.
Ask yourself – Will your company survive? If your company has cut your salary in the lockdown, then this means most probably you are not safe in recession too. Find out the recession proof companies.
Which means the companies that were working during the lockdown too, as work from home, like tech companies.
Non tech companies which are still going to work are ‘basic necessities sectors’ like food, pharmaceuticals, hospitals, groceries etc.
•It’s always better to be on a safer side than to panic.