Let's look into the flashback of events from January 2022 to till date.
At the beginning of 2022, due to the Omicron variant spread, the economy was weak.
The projected growth rate for 2022 was expected to be 4.4% compared to the previous year's 5.9%.
But no signs of recession yet, because everyone thought its due to supply chain disturbances, which would improve if production is geared up.
But that's not the case, due to the stock market crash from February 2022 itself things got worsened.
Suddenly all raw material prices, utility costs (crude oil, power). Food and edible products raise further worsened the scenario.
The economy started to melt and fell all over with rising inflation and high-interest rates.
In march quarter results more than 75% of major establishments' margins were down. But we believed that economy will bounce back.
But today the situation is signaling recession with companies announcing layoffs, job cuts, no hiring, and closures. Energy crises Real estate collapsing
Hope the restructuring measures taken by the companies will bring things to normal.
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