My Thoughts On The Global Recession
Yes, I think we will face a global recession in the coming years based on what is happening in the world right now. Firstly, before I start discussing the factors that make me confirm that there may be a global recession, let's briefly define what a global recession is.
A "global recession" simply means a period of time during which the world is experiencing an economic downturn. In a nutshell, there is a significant decline in economic activities, such as unemployment, trade, and gross domestic product, affecting countries. In my own case, I have confirmed that there may be a global recession based on the following factors:
The wars that are going on between Russia and Ukraine, which have caused countries like the UK, Germany, and Italy that depend on Russian gas, have caused an economic recession that is affecting other countries.
The high interest rates of goods and services. Today several big economies in the world are battling with inflation due to the fiscal policies that are put in place by their central banks to control the situation, which has in turn increased interest rates, like in the case of my country, Nigeria, where the government has changed the country's currency with a limited supply. There is a scarcity of money, and people are already suffering, which is leading to destruction of lives and properties.
The decreased demand from consumers. Consumers' declining faith in the economy results in a decline in demand for goods and services. The need for and ability to hire new workers will decline if this trend keeps up, as it will affect business revenues. In addition, several companies have reduced their workforce.
We all know that the progress of the job market is based on consumer demand and how well the economy is doing. If there is inflation, it will definitely affect the job market. We saw and read a lot about how several companies have reduced their workforce by laying off some of their staff and employing robotics.
During the era of COVID-19, several people lost their jobs because of how the job market was affected by the economic downturn, which may still happen again. In this case, if there is a global recession, the skills and qualities mentioned below will be most in demand in the future.
Digital literacy
Communication skills
Blockchain
Critical thinking
Cloud computing
Emotional Intelligence, etc.
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What lessons can be learned from past global recessions, and how can these be applied to better prepare for future economic downturns?
Despite the particularities of today, we may learn from past recessions about what to anticipate in terms of how long it takes for a recession to end and what policies, if any, might hasten that exit.
The larger takeaway from the past global recession is that countries are now much more intertwined than they had been for about a century, since the early 1900s, in terms of trade (in both goods and services, such as tourism), finance (in terms of both the availability and cost of credit), and labor (in terms of the direct and indirect demand for labor and the flow of remittances). Besides that, other lessons that can be learned from the past global recession are:
Be better prepared at all times in the future.
The lessons for the prospects for globalization