- India,
- 29-Jun-2025 07:20 PM IST
America News: Currently, the global economy is going through many challenges. From the US to Europe, China and Japan, there is an atmosphere of sluggishness and uncertainty in economic activity. The impact of these international developments is also visible on emerging markets like India.US: Decline in consumer spending and housing marketConsumer spending has declined in the US, which is the result of inflation and economic uncertainty. Demand for large goods and services fell sharply in May. The service sector has recorded its weakest quarter since the pandemic. Apart from this, the housing sector is also under pressure—sales of new homes fell by 13.7% to the lowest in three years. Rising mortgage rates, increased construction costs and sluggish labor market have affected the purchasing power of consumers.Cautious policy of the Federal ReserveThe Federal Reserve is adopting a cautious stance on interest rates. Fed officials like Christopher Waller and Michelle Bowman are talking about a possible cut in July, but for this they are waiting for clear signs of permanent control of inflation.Europe: Business stagnationBusiness activity in the European Union countries has stagnated. Events such as US trade policies, the Middle East and the Ukraine war have affected investor sentiment. Although there are some positive signs in Germany, such as the government's plan to increase public spending, tariffs and geopolitical tensions are still major obstacles.Britain: New wave of inflationFood inflation in Britain has reached worrying levels. Items such as butter, beef and chocolate have become expensive by up to 20%. This may affect the Bank of England's plans to cut interest rates, which may further deepen the economic slowdown.China: Industrial profits fallIndustrial companies' profits in China fell by 9.1% in May, which is the result of deflation and US tariffs. Due to this, companies there are cutting down on investment and new appointments, which may further slow down the country's economic pace.Japan: Historic increase in rentApartment rents in Tokyo city of Japan have increased at the fastest rate in 30 years. This inflation trend may impact the monetary policies of the Bank of Japan, which is likely to lead to changes in interest rates and economic policy in the country.Mexico and other emerging marketsMexico has managed to save itself from the brink of recession and has cut its interest rates by half a percentage point. Countries like Thailand, Czech Republic, Colombia, and Guatemala have not yet changed their monetary stance, but they are also keeping an eye on global conditions.Impact on IndiaIndia, which has been relatively safe from the global recession so far, is now feeling some pressure. India's exports may be affected due to reduced demand in the US and Europe. At the same time, the economic slowdown in China is causing disruptions in the global supply chain, which may affect India's industries. Nevertheless, India's domestic demand is still strong and the government's strategic economic policies are helpful in maintaining stability.