America does not recognize the economic recession.

Despite shrinking for two consecutive quarters.

The United States of America recorded a contraction during the first and second quarters
of this year at a rate of 1.6% and 0.9%, respectively,
considering that the real indicator of the recession of the economy is to record a GDP for two consecutive quarters.
Logic says that America is currently in a state of economic recession, but the United States completely ignores the recognition
that the American economy is currently in a recession,
and this is very clear by also ignoring the media inside and outside America,
specifically in Europe, thus ignoring the real criterion for measuring the recession of the economies of countries,
which caused everyone to puzzled, and we try to look for logical reasons.

The main reasons for not recognizing the recession of the economy are political reasons in light of the decline in popularity
and support of US President Joe Biden,
and perhaps also because the US economy in certain sectors is growing strongly despite the results of declining GDP.
It is also mentioned that the reason is linked in the official announcement and entrusted in this matter
is the committees of the National Bureau of Economic Research only.

topic

The pressure of the state of the world economy

The suffering of the Turkish lira continues amid rising prices and the loan crisis

Tech giants in the face of global economic recession and resort to accelerating employment.

The pressure of the state of the world economy

Since the beginning of the corona pandemic,
the global economy has been in a state of unprecedented turmoil,
which was reflected in the US economy, which inflation rates reached their record levels 41 years ago,
in addition to the wars and political problems taking place globally,
especially the Russian war on Ukraine,
which caused energy crises and some food commodities.
On the contrary, there are signs of a stable economy,
including the stable job market and also the current good consumer spending index,
which is the basis for the movement of the American economy.

US President Joe Biden, US Treasury Secretary Janet Yellen,
was promoting the idea of avoiding economic recession in the United States,
and that current inflation is temporary,
and at the last meeting of the Federal Reserve last week,
the Central Bank raised interest rates by 75 basis points,
and Jerome Powell’s response was always regarding the economic situation
that America is not in recession.

National Bureau of Economic Research “NBER”

A non-profit or party organization whose main goal is to evaluate the economy to see if it is in recession or not.
The same office issued a report in June 2020 on the end of the growth
period in the US economy after the Corona pandemic,
and the committee throughout its history has not retreated in any decision at all,
and the committee also holds its meetings in secret.
The committee works to analyze economic data
and reports completely away from political affairs,
and issues its report after it sees a noticeable decline in the economy
its activity at the level of different sectors for a period of months,
and its adoption on three basic criteria,
namely the speed of contraction,
the number of declining sectors and the duration of time for the contraction of the economy.

artical name America does not recognize the economic recession.

The suffering of the Turkish lira continues amid rising prices and the loan crisis

The Turkish lira has been under strong pressure since successive interest rate cuts in September 2021,
coinciding with the rise in inflation rates to record levels,
the continuation of the corporate loan crisis,
and the increase in gas prices in national gas companies again.

Controversy between Turkey’s central bank and companies over new loan rules

In Turkey, a set of new regulations were issued with regard to the regulatory aspect of granting loans,
where the Turkish authorities,
mainly Central Bank Regulation and Supervision Agency,
decided to limit the granting of corporate loans.
This decision comes within the comprehensive economic reform plan sought by the Turkish President.

On the other hand, companies see that these regulations put
a lot of pressure on companies seeking financing from banks,
although Turkey will proceed with its policies previously set.

Energy companies raise gas prices

Turkish officials seek to implement Turkish President Recep Tayyip Erdogan’s model,
which includes encouraging exports and tourism,
working to reduce interest rates and completely ignoring inflation rates
that he sees as due to the external economic situation.

But the increase in energy prices also affected,
where the price of natural gas increased by 10% to become currently 13.75 Turkish liras per cubic meter,
and this is not the first time for Botash to raise gas prices,
where prices were raised 30% in natural gas for housing and 40% for companies at the beginning of July.
These increases in energy prices came due to lack of supplies as well as
the Russian war on Ukraine and the rise in standard exchange rates,
thus reflected in the rise of fuel in the country and are a candidate for further increases in winter.

The Governor of the Central Bank of Turkey, Davutoglu,
said that focusing on the effective results of the economy through credit policies
that support the realization of a surplus in the current account.
He added that the regulations of the Central Bank provide exporters with good conditions in order to increase production.
He also sees that the complaint of companies regarding the regulations on financing companies is unjustified
and that these companies have an obsession with foreign exchange and seek to obtain it strongly.

The lira is columbling

The market witnessed today a decline in the currency of the Turkish lira against the US dollar,
where the price of the US dollar against the Turkish lira reached 17.94,
and is expected to reach 17.96 during today’s sessions,
and this comes in conjunction with the declines of the US dollar
after the Federal decision to raise interest rates last week.

artical name America does not recognize the economic recession.

Tech giants in the face of global economic recession and resort to accelerating employment.

At a time of heightened fear of the global economic recession
and the war between Russia and Ukraine and the continuation of the Corona epidemic,
many of the world’s largest technology companies are starting to deal with their staff needs.
Some of these companies find the solution to stop recruitment processes and others resort to layoffs,
on top of these giants Amazon and Alphabet, the parent company of Google.

Amazon is trying to lay off workers

The company adopted a policy of reducing the number of its employees,
as the rate of decline in the company’s employees reached 100,000 compared to the previous quarter,
and at the same time Amazon is working to reduce the employment rate until it adds jobs slower
than the rate in 2019, and here the company begins to austerity to face the economic crisis.

The company had employed a lot of its labor at the time of the outbreak
and the closure in force at the time,
but with the reopening of the company found itself facing a congestion of employees,
which affected the productivity rate,
as the number of employees currently reached 1.52 million full-time and part-time workers.

Alphabet is slowing down recruitmentGoogle

It is considered the parent company of the giant “Google”,
and its policy in dealing with the crisis was to keep the labor it has with slow recruitment,
as the second quarter of the year witnessed the employment of 10,000 people,
which was stated by the CEO of ,
adding that the company is not far from the stormy economic situation and we must be fully prepared,
and the company’s team is currently working on setting priorities in employment for the rest of the year,
and the number of employees of the company at the end of March reached 164,000 employees.

Apple is slowing down hiring and reducing spending

The technology company “Apple” also took measures to reduce recruitment
and spending operations in some departments,
in anticipation of any possible recession next year,
and the number of Apple employees in September last year reached 154,000 employees.

Facebook cuts hiring of engineers

Also, Meta Platformer, the parent company of Facebook,
resorted to reducing the recruitment of engineers by 30%, because Mark,
the CEO of the company, expects the worst periods of contraction in modern history, as he described it,
and the number of employees of Meta Company reached 77,800 employees by the end of March 2022.

artical name America does not recognize the economic recession.

America does not recognize the economic recession.

Related Topics