Tag: Global economy

International News & Politics

The US Economy Is Under Recession But India Is Safe

HT News

Reuters polls of economists predict a slowdown in the global economy including the US which is the largest economy in the world. But they say India faces no such threat.

Ten Points

US Economy Is Under Recession
  1. The report forecasts a 3% slowdown in the global economy followed by 2.8% the next year compared to the 3.5% and 3.4% in the last quarterly poll in April.
  2. The poll covered 48 economies out of which 77% were downgraded for the next year only, 13% are left unchanged, and 10% upgraded.
  3. The poll covered the top 19 global banks out of which 11 are forecast to see inflation returning next year.
  4. The remaining 8 banks will remain safe. They include the Fed, the European Central Bank, the Bank of England, and the Reserve Bank of India.
  5. The US Federal Reserve is expected to increase rates by another 75 basis later this week. It is an indication of inflation being at a four-decade high of 9.1%.
  6. The US has only a 40% chance of seeing recession but it is sharply up from three months ago. The chances of recession have also risen for the euro zone and Britain.
  7. Inflation forecasts for 48 economies show no quick relief from a cost of living in those countries. The inflation report of 90% of the economies has been upgraded for the next year and over 45% for 2024.
  8. Recessionary dynamics are increasingly evident in the forecast. Nathan Sheets, the chief global economist at Citi, forecast the major economies including the US slipping into recession.
  9. Nathan Sheets further maintained that the timing of recession could vary and the effect could be relatively mild.
  10. Noted Ethan Harris, global economist at Bank of America Securities, said that the economists
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International

Indian H-1B Visa Holders Fear Layoff

HT News

Foreign technology professionals holding H-1B visas want their permissible post-job loss limit to stay in the US from existing 60 days to 180 days. They fear massive layoffs due to the coronavirus crisis.

H-1B visa federal rules

It is a non-immigrant visa that allows US companies to hire professionals from foreign countries from countries like India and China. According to present rules, the US administration allows foreign professionals to leave the country within 60 days of losing their jobs.

Economic experts have expressed fear of massive layoffs in the job sector due to slowdown of the economy due to coronavirus crisis that is affecting every sector of the society. Already 3.3 million Americans have filed initial jobless claims till March 21. But the peak of coronavirus and joblessness is yet to come. It is estimated that approximately 47 million people will lose their jobs in America.

But H-1B visa holders are kept out of employment benefits. Also, they aren’t entitled for social security benefits even after making contributions to social security. The initial figures of jobless people show that most of the jobless people will be H-1B visa holders. Companies have already started informing their employees about the layoff.

Future of H-1B visa holders

The visa holders have demanded the Trump government to extend their grace period from 60 to 180 days. They have started a campaign on the White House website regarding the same. The petition has attracted more than 20,000 signatures but it requires a minimum of 100,000 signatures to get a response from the government.

Source: https://bit.ly/2w15kgA

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