MOHAMMAD ZIYAUDDIN
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New Delhi: Presidential elections are underway in the US, in which former President Donald Trump and current Vice President Kamala Harris are facing off. Although the election results are awaited, the tenure of the next US President is not going to be easy. The country is facing the crisis of economic recession, and according to experts, this recession has already arrived or may come soon.
Bankruptcy of 452 companies
Hundreds of US companies have gone bankrupt in the last few months. In the first eight months of 2024, 452 big companies have declared bankruptcy, which is the second-highest number in the last 14 years. During the pandemic in 2020, 466 companies declared bankruptcy. In August 2024, 63 companies declared bankruptcy, while in July this number was 49.
Which sector suffered the most losses?
1. Consumer Discretionary Sector: 69 companies have declared bankruptcy in this sector.
2. Industrial Sector: 53 companies have gone bankrupt in this sector.
3. Healthcare sector: 45 companies have gone bankrupt.
The US is heading towards a recession due to the sluggish economy, rising unemployment, and declining consumer spending. As a result, more companies are expected to go bankrupt.
Future challenges
The US has faced several financial crises over the years. In 2010, 827 companies declared bankruptcy, which was a result of the 2008 financial crisis. In 2020, 638 companies went bankrupt during the pandemic. In 2023, the number was 634. Bankruptcy of companies hurts job loss and economic stability, which affects the economy.
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