The slow growth of the Global economy makes headlines as major economies face severe crisis. According to The New York Times, no economy is growing at 10 percent after 2008 global crisis. Germany’s economy is on the edge of recession as it could face two consecutive negative growths. Decline in the working population and fall in productivity are the key issues under spotlight. Bloomberg report said Germany’s central bank has warned the country and suggested collecting 50 billion euros ($55 billion) of extra fiscal spending in an economic crisis.
The US-China trade war has an impact on Thailand as it experiences slowest growth in five years, it fell to 2.3 percent in the second quarter from 2.8 percent in the first quarter. While talking about the harm Trump is causing, Iran slides towards a deep economic recession after several years of sanctions imposed by the US over the country’s nuclear programme, said Financial Times. Nevertheless, Trump claims US is “doing really well.”
We are doing very well with China, and talking!
— Donald J. Trump (@realDonaldTrump) August 18, 2019
Meanwhile, Britain still does not have a deal over the Brexit, a government report leak claimed Britain could face port jams which might lead to shortage of food, medicine and fuel, reported Indian Express. Britain Prime Minister Boris Johnson has insisted that the UK will leave the EU on October 31 with or without a deal.
Hong Kong Protests
As a result of the ongoing Hong Kong protests, employers of the business companies resign after receiving extreme pressure from China. Employers were informed that some of their employees were part of the pro-democracy protests. The executives of the firms are distancing themselves from the positions taken by their employees. Tension emerged after a full page ad was published on the front page of the Hong Kong’s daily newspaper Apple about supporting the protests; the ad was signed and paid for by a group of anonymous employees of the firms, reported Indian Express.
The Automobile Slowdown
Global Automobile industry is facing the biggest slowdown. The industry faced a down fall perilously after the Lehman Brothers crisis in 2008, it took two years to stabilize and maintain good sales after that. However, since mid-2018 there has been a slowdown which may continue till 2020. According to Forbes India.
The CEO of Bosch, Volkmar Denner, said last year during an interview to a local German newspaper that slowdown in the auto industry could be the result of imminent slowdown in China coupled with the changing landscape for combustion engines. Automobile owners globally, have different theories for the reasons behind this slowdown. Reports The Hindu Business Line.
The economic cycle is not the only thing to blame, changing emission norms, like India’s adoption of BS-VI by 2020, Europe’s ban on diesel cars and increasing safety norms across the world and China’s electrification push have also lead to this slowdown.
The slowdown has also resulted in loss of jobs across the world. In India 1500 workers have lost job in almost 3 months, claims SAIM (Society of Indian Automobile Manufacturers). Reported in Business Today.
Global warming hits Iceland as they commemorate the loss of their first glacier, Okjokull, due to rising temperatures. A memorial plaque was installed at the site to raise awareness about the climate change due to human acitivity for the future generations. According to the Guardian, plaque read, “This monument is to acknowledge that we know what is happening and what needs to be done. Only you know if we did it.”
Meanwhile in Bangladesh
A massive fire leaves around 10,000 people homeless in a slum area near Dhaka, Bangladesh. The fire broke out at the Mirpur neighborhood of Dhaka on Friday. The people escaped with minor injuries and none were dead. Many residents were not in the slum as they were celebrating, the Muslim Eid al-Adha holiday with their families.
The authorities controlled the fire and most residents were garment factory workers who have lost all their belongings in the fire. The refugees were given shelters in camps and nearby school buildings. The authorities claim that they have been providing food, water, mobile toilets and electricity to the refugees and they are looking for permanent accommodation. Reports New Indian Express.
Fire accidents are common in this area due to insufficient safety measures, similar incidents have occurred in 2010 in Nimtoli and 2012 near Dhaka.