Tesla CEO Elon Musk said on Friday about the present global meltdown, mentioning that the recession the globe is currently suffering owing to multiple macro-economic issues might last up to 18 months.
Based on past experience, about 12 to 18 months, Musk said in response to a question from a follower about how long he thinks the recession will persist. "Companies with essentially negative cash flow (i.e. value destroyers) must die so that they stop consuming resources," he added.
The World Bank's chief economist, David Malpass, warned this week that Russia's military invasion of Ukraine might trigger a global recession as food, energy, and fertiliser prices rise. "Looking at global GDP, it's difficult to see how we can escape a recession right now... The mere thought of oil prices doubling is enough to send the economy into a tailspin "In media accounts, he was cited as saying.
The World Bank slashed its global economic growth prediction for this year by nearly a full percentage point, to 3.2 percent, earlier this month. Fertilizer, food, and energy shortages are also affecting developing countries. China has been particularly heavily struck by the new round of restrictions.
Economic activity has slowed dramatically across the country due to the Covid-19 regulations. According to Hayman Capital's chief investment officer, the US could enter a recession before the end of the year or in early 2023.
In India, foreign portfolio investors (FPI) withdrew over Rs 2.5 lakh crore from the stock market.
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