Pessimism has been rising, which results in less consumption and, finally, fewer investments. It has been reported that people are now losing trust in the future. In this era, only those countries will succeed, which are capable of creating infrastructure with a lot of innovation. This innovative infrastructure will help to push the entrepreneurial force of the young generation, which will result in the countries to succeed.
In a statement given by Klaus Schwab (the chairman of World Economic Forum), he told Business Today that the global economy would have some gloomy days, but there are chances of a recession to happen, and the reason for the downturn will be the slowdown of the global economy. He also added to this statement there are many interrelated reasons which are leading to deceleration of the global economy. But this problem has a solution which can be easily overcome by technology.
Business Today also conducted an exclusive interview with Klaus Schwab; he said that the global economy had to suffer a slowdown, and this was to happen because the global economy has been on an upswing cycle, which was caused by qualitative easing. He also adde that there is an artificial driver for global economic growth in many countries. The monetary easing ammunition is about to come to an end.
Another factor why people are now losing trust in the future is trade wars and rising populism. WEF had published in the Risk Reports that environmental risks have been continuously increasing and also the sea levels, which is a significant cause of this. He added this to his statement.
In earlier times, people were very optimistic about the future, but now they are pessimistic about the future. With the rise in this pessimism, it has resulted in less consumption and, finally fewer investments. He concluded his statement by informing that global economic growth rate may fall between 1-3%, but will never fall below. Lastly, for India he said, "I am not sure if India should rely on catching such companies. I think India should rely on using its young sophisticated population, using its unique digital advantage of big data.”
