UK’s recession is worse than US and Rest of Europe

The International Monetary Fund (IMF) has warned that UK will suffer longer recession than US and the rest of European countries. IMF is been busy with forecasting the recession in various countries. It came out with a shocking report that United Kingdom will suffer more than other greater countries.

According to the predictions the UK’s economy will contract by 3.8% this year which is definitely much more slump than that predicted by UK government. Many are of the opinion that these predictions are mainly due to the Labour's economic policies.
If these predictions are correct then this could shatter Labour's chances of winning a fourth consecutive term in office. However IMF will not officially disclose these data until April but unofficially they were released by Teresa Ter-Minassian, an adviser to IMF managing director Dominique Strauss-Kahn.

The survey estimates that the US economy will be shrink by 2.6% and Eurozone that comprises of major European countries may go down by 3.5% . According to these reports and predictions Japan’s economy will be the worst hit as it may suffer till 5% of their economy.

Analysts said the grim figures reinforce fears that the grinding economic crisis will send unemployment above 3 million within two years. Unemployment has been rising steadily since January 2008, with the pace increasing as retailers, manufacturers and banks all suffering from the downturn. There are now 10 jobseekers chasing every vacancy, putting pressure on job centers around the country.

Save us from Recession

If you deprive a person of oxygen he will turn blue, collapse and eventually die. Deprive economies of credit and a similar process kicks in. “The economic slowdown in Europe and America was quite evident in middle of 2007” was the say of many economists. Really people should have predicted this earlier and should have done something to minimize the effect.

According to the IMF’s most recent World Economic Outlook, published on October 8th, the world economy is “entering a major downturn” in the face of “the most dangerous shock” to rich-country financial markets. Its obvious that earlier market had such blow in 1930 due to world wars.

Almost all major economies are just shrinking. Something has to be done to blow back to its normal. Major concern for this shut down is insecurity. People are feeling disturbed and they don’t know where to invest their hard earned money. In fact now none of them want their money to grow but wishes to safeguard it from getting diminished.
Governments should do something to clear off this insecurity from their citizen’s mind. People are to be encouraged to invest.

Governments need to bring this confidence amidst public. If the investment grows naturally the banks relishes as in turn stock market starts cherishing. Crisis can be brought down only when everyone stand up together.

Marketing Tips

Complacency or overconfidence kills more companies than competitors. Always assume that you are under attack, because you are. The most vulnerable companies are the market leaders, because they have more to lose. Protecting the past and perfecting the present is not a good path to finding the future, but this is what the current leaders are doing.

The best defense is good offense. It is hard to attack when you are being attacked. That is a continuous attacking market strategy is far more superior to a defensive one. The ones to attack are the competitors. The best policy is “Do it to them before they do it to you”. When Japanese car manufacturers shortened the development period to half of what the Americans take they got a natural advantage over Americans in that field.

The best way to improve is to take care of the most important group of people in any marketer’s professional life – customers. Remember Theodore Levitt’s words “The purpose of a business is to create and keep a customer happy”.

Recession - Where did it start?

After writing some posts on recession I wanted to look up the reasons for this global recession. And of course feel free to comment on this post. I have just shared my opinions and reviews here.

“2008 recession was previously predicted” this was a statement made by several economists. What the hell they were doing then? Is a common man’s query. Well, 2008 recession was marked up by high oil prices which in turn led to high food prices. Governments should have taken measures to control these stuffs earlier. This hike in oil price got reflected in the food prices which eventually resulted in high inflation. This is when most of the governments got alert and try to bring it down. The worst part here is that some Governments failed to do even this. They let allowed the inflation to touch its peak ? . The inflation naturally led to substantial credits that in turn leading to bank collapses. Bank collapses caused panic leading to stock market crashes.

However I feel that this global crisis did some good!! All the big nations came forward together to fight this crisis. It’s really nice to see the developed countries holding hands for the others to come out of this recession.

But the Governments still have a long way to solve this crisis. Its also the responsibility of every citizen to react smartly to this tough situation. People should not get panic about this crisis and should contribute to ease the situation in some way.

Depression, Recession – Talk of the town

Sudden increase in unemployment, blackout of stock markets indicates the depression has begun and started hitting the economy badly. The crisis is worsening day by day and panic among the public allows it to reach the peak. But economists are of the view that depression is worse than recession as the latter can be clearly defined as the backlash of economy while the former hasn’t got a clear definition. And almost all the economists and financial counselors have now agreed that epic hardship of the 1930s is back again. But this time it would hit us worse since the population is huge and the financial structure is not too strong of many countries. Adding to these worries is terrorism. Terrorist wants to show their presence then and there causing more panic and increasing the instability of the people. All the governments are in a confused state whether which is worse depression or terrorism. But the governments are responsible to deal both these evils and stop them from growing.

Let me come back to our recession. No one disputes that the current economic downturn qualifies as a recession. Recessions have two handy definitions, both in effect now two straight quarters of economic contraction, or when the National Bureau of Economic Research makes the call.

So it’s all now left with the public to deal with these growing evils without panicking.