- 27 December 2022
- By GyanOk
Daily Current Affairs Notes for 27 December 2022
International Day of Epidemic Preparedness 2022 celebrates on 27 December
International Day of Epidemic Preparedness 2022:
What is global recession 2023 and its impact on India?
Global Recession 2023: According to the Centre for Economics and Business Research (CEBR), a global recession will start in 2023. A global recession is predicted by other agencies as well to begin in 2023. New borrowing costs put in place to fight inflation cause several economies to shrink. According to the British consultancy’s annual World Economic League Table, the global economy topped $100 trillion for the first time in 2022 but will halt in 2023 as governments continue to struggle against growing costs.
Global Recession 2023: CEBR Prediction
The researcher's conclusions are more pessimistic than the IMF's most recent forecast. According to Bloomberg, that organisation issued a warning in October predicting that more than a third of the global economy will contract and that there is a 25% chance that global GDP will grow by less than 2% in 2023, which it defines as a global recession.
By 2037, as developing economies catch up to the wealthier ones, the global gross domestic product will have doubled. By 2037, the East Asia and Pacific region will account for over a third of global output, while Europe's share will fall to less than a fifth due to the shifting power dynamics, according to Bloomberg.
The data from the IMF’s World Economic Outlook and an internal model serve as the foundation for the Centre for Economics and Business Research’s estimates of growth, inflation, and currency rates.
Global Recession Impact on India
- The report predicts that India’s economy will reach $10 trillion by 2035 and rank third globally by 2032.
- Since the US is one of the great superpowers, a mild or deeper recession will eventually have worldwide repercussions.
- The crisis ultimately grew and spread into a global economic shock, manifesting itself in a number of European bank failures, drops in several stock indices, and significant falls in the value of the Indian market.
- Given that Indian businesses had significant outsourcing agreements with US clients, a slowdown in the US economy was undoubtedly terrible news for India.
- Over the years, India’s exports to the US have grown. However, India was impacted and managed to survive the severe financial crisis of September 2008.
Global Recession 2008
Before 2008, the Great Recession had already started. The first warning indicators appeared in 2006 when home values started to decline. By August 2007, the Federal Reserve had injected $24 billion in additional liquidity into the banking system in response to the subprime mortgage crisis. By October 2008, Congress had authorized the Troubled Asset Relief Program, a $700 billion bank bailout. Obama proposed the $787 billion economic stimulus programme in February 2009, helping to prevent a global depression.
Factors that Saved India from Global Recession 2008
- The Indian economy was shielded from the negative effects of the global recession by a number of factors.
- Due to the fact that India’s economy is heavily dependent on agriculture, it was prevented from experiencing mass unemployment like other impacted nations.
- The mortgage-backed securities and credit that turned toxic and brought down western financial institutions were nearly entirely ignored by Indian banks and financial institutions at the time.
- Despite the fact that the Great Recession had a significant negative impact on India’s merchandise exports, IT and BPO exports did not suffer as a result.
- Despite the financial crisis, foreign direct investment increased.
- Financiers stopped flowing into India, but long-term owners of companies and plants continued with their ongoing projects.
India to Become $10-Trillion Economy by 2035: CEBR
India will become the third economic superpower by 2037 and a $10-trillion economy by 2035, Centre for Economics and Business Research (CEBR), a leading London-based consultancy, has said. Published on Monday, the report said the world is moving towards recession.
However, over the next five years, the annual rate of India's GDP growth is expected to average 6.4%, after which it is expected to grow at average 6.5% in the subsequent nine years.
"This growth trajectory will see India rise from fifth place on the World Economic League Table in 2022 to third in the global rankings by 2037," it said.
According to the report, the pandemic had a particularly devastating effect in absolute terms and India had the third highest death toll globally, yet the economy bounced back.
"In 2035, we forecast that India will become the third $10-trillion economy. Although there are political factors that could hold India back, it has demographics on its side," the report said.
The report also played down concerns over high inflation, saying it has remained lower than in most other large economies.
Much of India's current inflation rate reflects higher food prices, an erratic item but one that also accounts for a larger share of the consumer basket than in any other G20 country, CEBR added.
India’s Cuisine Ranked Fifth in the list of best Cuisines of the World
Best Cuisines of the World:
Cuisines of the World: India is ranked fifth on the global list of the best cuisines for 2022, according to Taste Atlas. The ranking is based on audience votes for ingredients, dishes, and beverages. Italy’s food came in first place followed by Greece and Spain. India received 4.54 points and the best rated foods of the country include “garam masala, malai, ghee, butter garlic naan, keema”, the rating said. It has a total of 460 items in the list. Furthermore, the best restaurants to try Indian cuisine are Shree Thaker Bhojanalay (Mumbai), Karavalli (Bengaluru), Bukhara (New Delhi), Dum Pukht (New Delhi), Comorin (Gurugram) and 450 others, according to the list.
Taste Atlas: Globally
Japan, the United States of America, Turkiye, France and Peru were also among the top 10 countries with best cuisines. Chinese cuisine, which is the world’s most popular, however, ranked 11th on the list.
Top 10 Cuisines in the world
- United States
Top 5 “Best Traditional Dishes” in the world
- Kare (Japan),
- Picanha (Brazil),
- Ameijoas a Bulhao Pato (Portugal),
- Tangbao (China),
- Guotie (China)