Global Recession TODAY is Different

Experts believe the global recession is “the future for every country”, it’s no longer a prediction but something inevitable that we see forthcoming as the economy is in rapid turbulence. However, the global recession we’re facing today is different from the previous one. How so? Let’s take a deeper look!

It’s no longer a myth as we’re seeing clear signs of recession coming as early as next year. Economists surveyed by Bloomberg think there’s a 65% risk of a recession over the next 12 months and could bring a lasting effect until 2024. With high inflation, rising interest rates, unstable stock market, commodity price shock, decline in supply-demand chain, and the list continues… With the economy entering the dark phase and will only get tougher than ever!

As the recent news of massive layoffs and hiring freeze around the industries, companies have been trying to downsize in response to the recession and as for some are already experiencing the effect. But on the contrary, most industries now are actually “preparing” for the worst as they’re contingency planning – staff cuts, reduction in spending, tightening budgets, and so on. With this, businesses should be able to identify what course of action should be taken and recession should include opportunities for growth… and that’s why this recession is “different”.

Recession refers to the period of economic decline during which trade and industry activity are heavily reduced. It affects almost every part of the industry, business, and human lives at most. For instance, the 1997 Asian Financial Crisis and the 2008 Great Recession are a few to mention how economic turbulence changed the course of a nation’s life and created lasting impact we see ‘till today. And how does recession today differ from the previous one we had? Because today we have technology.

Past recessions were tackled using the old and traditional method of asset relief, loan money, and economic stimulus package, which helped avert a global depression but the lasting impacts still affect the majority of people and households. However, with experience from past events, it creates a pattern and data that can be used by companies, industries to better understand what can be avoided and what should be implemented. Hence, data might just be a help.

Economists said that the recession is not just about the level of economics, but a sign of direction change either it’s good or bad. But only using the right knowledge and strategy could companies and businesses actually utilize this as an opportunity to recover and grow. Artificial Intelligence and Data Predictive Analysis is one to mention. By analyzing different past events, solutions, and actions that have been taken in the past, using machine learning modes and recognition to predict emerging issues or trends in the future. This could give a tremendous advantage for businesses in the turbulent economy and competitive market. 

For instance, using an analytics-based predictive model that helps estimate how future sales would go in recession mode next year and give companies time to respond more promptly with data-driven insights. Certain functions become more important than others in a recession. Real-time demand forecasting and inventory management using AI will be in a position to react extremely quickly to the changing environment and be able to predict where to allocate your funds as opposed to only responding to historical data.

The bottom line is that Artificial Intelligence and Data Predictive Analysis couldn’t hinder the fact that global recession is happening but it could shift the impact into less damaging by using it as a leverage across business actions and that analytics should not be deemed extravagant during bad economic scenarios. And so far, what we have learned from the past recession in decades, is that everything will change… for bad or good.

And in times like these, adapting to global changes and identifying challenges at an early stage gives companies a competitive advantage to find the right solution. BIGIT holds a decade long experience specializing in Conferences, Masterclasses, and focused In-House Training Service “personalized digital transformation solutions” for organizations and businesses across industries. With a bespoke comprehensive A to Z knowledge and interactive training sessions to adopt the right antidote, you could head-start on to set a digital presence and change possibilities into strategies – Reach out to us or click here to learn more!