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Is Recession Back?
The current economic uncertainty might portend an era of Asian dominance over the world, which used to be the case in ancient times. Will the world enter into a second recession?

THE US downgrade has caused fear amongst global investors. The contagious effect was such that stocks around the world remained volatile on Tuesday. Should we assume that we're once again entering another recessionary phase, in which people will be rendered jobless, companies will resort to pay-cuts and hiring will be limited? It sounds so at the moment and the reason is that globally markets rely on the US economy. The US govt's inability to avert the credit crunch and Standard's & Poor's downgrade to the US economy have triggered fears amongst the investors, who refrained from stocks around the world.

In the meantime, market analysts have also speculated that the US's loss in other words might turn out to be India's or China's gain. But the argument seems less convincing, since both India and China have poured their foreign reserves in the US economy. It means that the US does not have money to pay back. Then what? The question is difficult to answer because the uncertainties loom in Asia, Europe and America. If the crisis persists in the US and European economy, it will adversely affect Indian IT and BPO industry that receives most of its business from these elite markets.

In other words, the current scenario might be a correction in the global financial setup, forcing policy-makers and entrepreneurs to devise innovative strategies to carry on growth. In developing countries such as India and Brazil, the government's priority should be to invest in areas underutilized. In addition, it might be an end of the US dominance over the global community. It might be a signal of the shifting financial hubs to Asia as was the case in the ancient times. In short, the turmoil means many things right now. We must wait and watch rather than panic.

Editorial NOTE: This article is categorized under Opinion Section. The views expressed in this article are solely those of the author and do not necessarily represent the views of In case you have a opposing view, please click here to share the same in the comments section.
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