Since the Corona epidemic, even the countries with the world’s largest economy are under the shadow of recession. Now even in Germany, which is called the engine of Europe, a terrible form of economic crisis is visible.
In view of the danger of recession, Germany, the world’s fourth largest economy, has started putting full emphasis on reducing its expenditure. Let us tell you that the euro fell sharply on Thursday. At the same time, the US dollar reached the peak of two months.
Along with this, the danger of America’s default has also increased due to which other countries are also scared.
Let us inform that from January to March i.e. in the first quarter, a decline of 0.3 percent in Germany’s gross domestic product (GDP) has been registered. The federal statistics office released the data to Guruvak.
At the same time, in the fourth quarter of the year 2022 i.e. between October and December, Germany’s GDP declined by 0.5 percent.
In such a situation, due to the decline in the results of the quarter of both the years of Germany, the risk of economic recession is increasing in the country.
At the same time, rating agency Fitch has also warned about America. According to Fitch, if US lawmakers do not increase the debt limit, it will have to downgrade America’s rating.
Explain that the government and the opposition are unable to agree to increase the debt limit in America.
China and Japan, the world’s second and third largest economies, are also under a lot of tension due to the threat of America’s default.
Explain that both China and Japan together hold a share of $ 2 trillion of US debt.
In the year 2000, China started investing in US government debt. America also supported China’s joining the World Trade Organization, after which there was a boom in exports. At the same time, China also got a large amount of dollars.
At one point, China’s investment in US Treasury bonds reached $1.3 trillion.
According to the report, China was the largest foreign lender to the US for a decade. However, the tension between the two countries escalated during the Trump regime. After which Japan replaced China.
Now in the midst of the crisis of economic recession, both these countries (China and Japan) are worried about the danger of America’s default.
However, in the midst of this all-round economic crisis in the world, India has emerged as a ray of hope for the world. At present, the risk of recession in India is considered to be zero. At the same time, the risk of China going into recession is up to 12.5 percent.