How do you think our impending recession is going to affect the rest of the world?

MNSL answered 2 years ago …

There is no doubt impending recession will affect for world economy. We must not forget still USA is the number one consumer in the world. So demand for certain goods and services will come down. As a result revenue of certain companies all over the world will come down. Even oil prices and prices of some other commodities with less demand will come down. People will have less money to spend and invest.

However certain industries such as food industry will do better during recession. Sectors such as electronic, technology, some commodities including export oriented companies exposure to USA will hit badly. When you look countries like China, India, Malaysia and Middle East countries etc all depend mainly on USA for their exports trade. So these countries will have less revenue and World growth rate will come down. We must not forget presently both developing and developed countries make money due to demand for products, commodities and services from developing and developed countries. That is why we see higher commodity prices for commodity such as gold, oil, products and services. So in the event of recession in USA There will be less demand and lower price for above products and services and as a result world revenue will come down. So investment will come down except for selected areas.