Infosys CEO warns a 2nd global recession

Bangalore, Dec 14: Infosys CEO and Managing Director S Gopalakrishnan has warned about an global economic crisis which is similar to the Sep 2008 global economic meltdown.

Citing the present global economic environment, Gopalakrishnan said that the condition is unpredictable and has been facing so many uncertainties similar to the 2008.

"Every week and every month, we hear about certain challenge in the economic environment. For example, concerns about countries running into turbulence in Europe," said Gopalakrishnan.

He added that a collapse of a single bank will lead to "domino effect" which leads to the global economic recession. The present unpredictability is similar to the 2008 but the effect will be tremendous. The worry in 2008 was the fail of business but, now it changed to fail of the nations.

"That's what's people are worried about. That's unpredictability. While worry in 2008 was about businesses failing, it's now about nations failing or could fail. "That's the uncertainty," he added.

Gopalakrishnan expressed the anxiety over the increase of unemployment in the world. The increasing rate of unemployment in UK led the government to raise the cost of visas for skilled workers from India and other countries.

He has the opinion that the reduction in construction activity, online trading and geographical change in manufacturing were the main reasons for the increase in unemployment and government in different countries are forced to do something to curb this rate.

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