Do you feel that the global economy is declining?

[Cryptomultiplier]

If we're looking at 5 years, then I agree that in many countries, including mine, things are getting worse. Salaries are higher in local fiat, of course, but the purchasing power is lower than it used to be, so to improve your life, you need to be in active career growth to outrun these changes.
That being said, I'm not sure if it's a global trend, because in my country it has regional causes that aren't relevant elsewhere. I tend to agree with Charles-Tim that objectively, the global economy isn't on decline.

I too don't think for one that the global economy is on a decline. Am sure any economic problems may be more due to the causes of government policies and regulations within your region or country.
Also, I think that the global economy is nearing a time when change gets to flush out certain reliance on some currency policies that are no longer favorable to the citizens and with the emergence of cryptocurrency and the BRICS currency initiative, more is expected to happen to alter certain economic ties and create new ones to bolster the macroeconomics of the countries of which the change is to happen within .

[1714625807]

1714625807

[Jatiluhung]

One of my colleagues told me that his salary is lower now than it was five years ago. Sadly, the price of goods is rising.

This is a fact. Currently, it seems that most of us are also aware that the global economy is declining. But in the country where I am now, things are actually still going quite well. Even when other countries are experiencing difficulties due to soaring natural oil prices. But it doesn't feel like it here. It's just that inflation is clearly felt. Well, our salaries might increase every year. Whether it's because of a promotion or something like that. But the fact is that its value continues to decline quite clearly. And that can be proven by the fact that 5 years ago we could buy a lot of things with the salary we got for 1 month of work. But today 1 month's salary cannot buy many things even though the amount has become more and more growing.

[dothebeats]

The value of your friend's salary has declined, that is a fact. Even though its face value is continuously increasing due to appraisal, bonuses, and promotions, the things that can be bought with it has surely diminished over time. The prices of goods are continuously rising, and it does not match the salary increases across all economies. This is why it's important to have a hedge on what we receive for our salaries, perhaps gold, crypto, or other investments that are outperforming the inflation on our own countries.

If we're looking at 5 years, then I agree that in many countries, including mine, things are getting worse. Salaries are higher in local fiat, of course, but the purchasing power is lower than it used to be, so to improve your life, you need to be in active career growth to outrun these changes.

Even promotions no longer provide security against inflation. Unless you're promoted into an executive position, most promotions only increase your responsibilities but not the reward based on my experience. Companies no longer value their best performing employees, they just use them for their own benefit.

[passwordnow]

No, his salary didn't went down but it is inflation that cost his salary to be down. This is a normal thing for most of the workers nowadays, whatever your work is and if you didn't received that much increase then the value of your salary has gone down compared to the prices of the commodities today. It's sad that when it should be a continuous rise against the inflation rate for the salary of every hardworking person but not every company can do that as it also depends on the revenue that they're having. But many of them are abusive despite that the economic situation of many that are experiencing hardship and if the company is doing good, they should give the random raise to all of their employees that deserve it so that they will have at least a mark up or increase against the nonstop cost of inflation.

The company has nothing to lose, they know that the employees already fine with their jobdesk, environment and colleagues, so they will not going to resign because for some people they value mental health over money. If the employees resign, there always be a lot people want to get this job, it makes the former employees can't go back if they're not happy with the new company.

This case is really hard and you can't wish the boss will be kind to the employees, working abroad in low populated country is better.

I agree about that going to countries with low population as the demand there is high for workers. And with that, it is setting the salary of the most to be in that kind of expected salary of yours. It's a fact that when a company wants to fire you, you'll just get fired for whatever reason they'd do, like cost cutting, underperformance or any of the reason that they can set. It's hard for those employees to absorb that especially if they've been loyal to them for a very long time but, they can't do anything about that if the company decides to. However, for the past decade, I've seen companies although they're only few but they do value their employees and takes care of them as a real family. That's why for somebody who has got type of company, I understand that it's not all about the salary why they're staying but it's about the treatment that they're getting.

[MoHaMmAdOk]

One of my colleagues told me that his salary is lower now than it was five years ago. Sadly, the price of goods is rising.

You said it's less now than five years ago. It should be seen what the economic condition of his country is like. This will likely happen if the financial situation deteriorates.
Now the prices of goods are higher than before in all parts of the world. An economic recession is going on around the world, which has led to this.
If you think about how things have gone up over the past five years, you'll realize that this is due to inflation. The economic condition of his country depends on inflation. If it is more, then the situation in your country will go towards disaster.

You will notice now that even in the open world, their currencies and the current market conditions of the commodity prices are also higher.

[Poker Player]

Well, no, I don't feel it. What I see is a lot of people with big cars for the salary they earn, acquired with leasing or 10-year financed and in some cases rolling in negative equity of the previous car, high-end cell phones also financed, restaurants full, and idyllic lives on Instagram. Which makes me think that, apart from the few who have real money, what I see reflects that access to and use of credit has hardly reduced, despite interest rate policies, which is consistent with recent inflation data.

[retreat]

One of my colleagues told me that his salary is lower now than it was five years ago. Sadly, the price of goods is rising.

If that was the case, why didn't he try to find a better paying job somewhere else? why should he stay in a place with a fairly low salary. Because the prices of these products will indeed increase every year due to inflation. You cannot expect that food prices in 2016 will be the same as food prices in 2024, there will definitely be an increase. That's why the government increases the minimum wage every year to adjust to inflation, so when someone gets the same salary every year without any increase it means the company is at fault and they can be reported to the authorities.

[wxa7115]

One of my colleagues told me that his salary is lower now than it was five years ago. Sadly, the price of goods is rising.

You cannot really use a sample size of one to come to that conclusion, however due to the pandemic it is true there are many countries that suffered severely because of it, and in a way many of those countries have not recovered yet.

But at the end each person is responsible for their economic future, so if the salary your friend receives is smaller than what it was 5 years ago, maybe his occupation is being replaced by AI or other forms of automation, and maybe it is time he looks for other ways to earn a living.

[bitLeap]

One of my colleagues told me that his salary is lower now than it was five years ago. Sadly, the price of goods is rising.

Lower salaries or because their value is influenced by inflation, while traders in the market respond more quickly by increasing prices. Some responsive countries and compliant companies will create new policies by increasing wages, but not all companies do this. Instead of increasing salaries, they actually impose more additional tasks on employees in exchange for working overtime if they want to get more salary. Traditions like this no longer apply, and the government often does not care about company operations which impose additional burdens beyond the main duties of an employee. However if you look at the global economy, there are many factors that influence its decline, such as war conflicts which usually cause trade relations with related countries to decline, demand in the market experiences negative things while domestic production continues, workers have to be paid while target goods on the market are hampered. As a result companies will take action to reduce employees or other options to reduce salaries because product demand in the market is decreasing.

[0t3p0t]

One of my colleagues told me that his salary is lower now than it was five years ago. Sadly, the price of goods is rising.

Inflation at it's best. I am wondering where your colleague is at the moment. Here in my country it's all the same local currency is depreciating it's value while prices of goods are getting high so yeah something is wrong in the economy that needs to be fixed immediately.

[Alpha Marine]

To know about economy power, DGP is used. Go and read more about GDP to know what it is.

About Nigeria, the GDP the country has in 2014 which was almost $570 billion. It was $441 in 2021. $477 in 2022. $390 in 2023. According to Wikipedia, it has decreased more significantly in 2024.

I know that the Nigerian GDP has shinked a lot over the years, that's why they have been in a recession a few times over the years.

I agree that GDP is the factor used to measure economic growth, I am not disputing that fact. I am only making an observation that I usually see when looking at GDPs of countries. I mentioned Nigeria because I read recently that the GDP has increased by a certain percent in that particular quarter, but how has that affected the average Nigerian?

In Africa, Nigeria has the second best economy in terms of GDP after Egypt, but can we use that to say Nigeria is the second best country to do business or the second best country to work in?

Nominal GDP of African countries
In the link above you'll see that the difference between between the nominal GDP of Egypt and Nigeria is very little, but looks at the per capita of those countries. You'll find out that Nigeria has one of the worst per capita among the top countries of the continent. When you consider the fact that inflation in Nigeria is around 30%, you'll realise how bad it is for the people despite the GDP being one of the best in the country. Also when you look at the percentage of people living below the poverty line, you'll see that Nigeria is on 40%, there are reports that show that that figure is around a 70% region, but I'm sticking with Wikipedia.

I'm stating all these so we can get a picture of how things really are. My point is, using GDP to tell if a country is progressing is okay, but in few cases, it doesn't really tell the whole story.

[Charles-Tim]

Nominal GDP of African countries
In the link above you'll see that the difference between between the nominal GDP of Egypt and Nigeria is very little, but looks at the per capita of those countries. You'll find out that Nigeria has one of the worst per capita among the top countries of the continent. When you consider the fact that inflation in Nigeria is around 30%, you'll realise how bad it is for the people despite the GDP being one of the best in the country. Also when you look at the percentage of people living below the poverty line, you'll see that Nigeria is on 40%, there are reports that show that that figure is around a 70% region, but I'm sticking with Wikipedia.

Even that link above is for 2023.

This is the current one: https://en.m.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)

Just look for African countries and you will know Nigeria is the fourth.

This was yesterday news on Bloomberg:

I have just seen this on Bloomberg which was yesterday news.

Nigeria’s economy, which ranked as Africa’s largest in 2022, is set to slip to fourth place this year and Egypt, which held the top position in 2023, is projected to fall to second behind South Africa after a series of currency devaluations, International Monetary Fund forecasts show.

The IMF’s World Economic Outlook estimates Nigeria’s gross domestic product at $253 billion based on current prices this year, lagging energy-rich Algeria at $267 billion, Egypt at $348 billion and South Africa at $373 billion.

The GDP recently is less than half of what it was in 2014. It is quite unfortunate for Nigeria.

[bitzizzix]

One of my colleagues told me that his salary is lower now than it was five years ago. Sadly, the price of goods is rising.

It seems that no company will reduce salaries as low as or below the minimum wage because if that happens the government will act or workers will quit because they cannot meet their needs. Because from year to year the salary will definitely increase and adjust to the increase in all goods due to inflation.
Perhaps the increase in inflation is not balanced by existing salaries, and there are also salaries that are still below the minimum wage standard, even very low. Because it's not a big company or it could also be because the minimum wage in the area is very low, and if that's the case why not look for or apply for a job that provides a standard minimum wage or more.

[Despairo]

It seems that no company will reduce salaries as low as or below the minimum wage because if that happens the government will act or workers will quit because they cannot meet their needs. Because from year to year the salary will definitely increase and adjust to the increase in all goods due to inflation.

That's your thought, but not every nations, companies and positions will follow that.

Reduce salaries is hard, but during pandemic, they can cut whatever they want and the employees don't mind with that.

Even the workers choose to resign because they feel the salary is too low, there's always be a person will to work for the same position with less salary. So this is a win-win situation for both former workers and companies.

if that's the case why not look for or apply for a job that provides a standard minimum wage or more.

It's easy to say that done, if there are many high paying jobs opened, the @OP friends won't complain.

[Marvell1]

It seems that no company will reduce salaries as low as or below the minimum wage because if that happens the government will act or workers will quit because they cannot meet their needs. Because from year to year the salary will definitely increase and adjust to the increase in all goods due to inflation.

That's your thought, but not every nations, companies and positions will follow that.

Reduce salaries is hard, but during pandemic, they can cut whatever they want and the employees don't mind with that.

Even the workers choose to resign because they feel the salary is too low, there's always be a person will to work for the same position with less salary. So this is a win-win situation for both former workers and companies.

Yes, it depends on each country. In my country, some companies do not hesitate to reduce workers' salaries on the grounds that there are not enough costs to maintain the company during difficult economic times. Those who can accept it will continue to work, those who cannot accept it can quit immediately.

According to the provisions of labor law as well as the regulations of any company, the salary will increase according to working time, experience... but on the condition that the company develops well and does not encounter difficulties. But once difficulties arise, those regulations will no longer be effective and that is a disadvantage that workers must accept.

[Volimack]

The world economy is shrinking because inflation has raised the prices of many goods that are difficult for low income people to afford. The economy has many problems some of which are very fundamental. As long as these are not resolved the country's economic development will not accelerate. No government is able to function peacefully due to political instability. Due to political instability economic development has been greatly hampered.

[suzanne5223]

One of my colleagues told me that his salary is lower now than it was five years ago. Sadly, the price of goods is rising.

He/she was right. Although the salary paid to workers now is increased from 5 years ago salary but judging by the fiat currency de-value it is much lower than the previous year's salary and this shows that the global economy is on a downslide motion.
Sadly, the government never agree to this and always tell the people everything is fine while the main cause of the problem start from the yearly printing of new fiat currency.

[wiss19]

If we're looking at 5 years, then I agree that in many countries, including mine, things are getting worse.

I think it's better to not feel that way or be negative because I'm sure you won't like its effects. Instead, what mindset we should have is to be positive at all times and believe that things will only get better.

Salaries are higher in local fiat, of course, but the purchasing power is lower than it used to be, so to improve your life, you need to be in active career growth to outrun these changes. That being said, I'm not sure if it's a global trend, because in my country it has regional causes that aren't relevant elsewhere. I tend to agree with Charles-Tim that objectively, the global economy isn't on decline.

At least, the government or the employer made an effort to increase our salaries even though inflation might still rise because it is still fighting its effects but if we want to ensure that our monies are still valuable, we can do investing. To have an active and growing career is also great, as this ensures financial stability. For now the decline may not be global but there will be times that all will now experienced what the others have experienced. So don't be confident and always prepare your selves.

[BD Technical]

In the current situation, all countries do not always have the same worm and the condition of the world where worms are very good, in fact, our Bangladesh is in this category of people.  The pictures are very good in the country or many categories are very high but there are many categories in Bangladesh and here the salary in garment or any other factory is very low.  The salary of our country should be increased because a minimum or a small person who has lehlpar or a category wage earner should get twenty thousand rupees even if the salary is minimum.  A career or a helper's salary is not equal to the salary of a person who does bad business for a living and develops finances and it becomes difficult for him to live his life.

[Kriptogram14]

At least, the government or the employer made an effort to increase our salaries even though inflation might still rise because it is still fighting its effects but if we want to ensure that our monies are still valuable, we can do investing. To have an active and growing career is also great, as this ensures financial stability. For now the decline may not be global but there will be times that all will now experienced what the others have experienced. So don't be confident and always prepare your selves.

Yes, that's right, because of the aggressive increase in reference interest rates carried out by the central banks of various countries in an effort to reduce the rate of inflation, yesterday was hit by Covid-19 until now the economy has not recovered properly. Due to the increase in energy prices and reference interest rates in various countries, inflation has soared , until now we still feel inflation, because the world is also facing the challenge of climate change which will greatly affect state finances, the economy and people's welfare, therefore we have to look for solutions so that the economy in our country improves again, such as improving the quality of ourselves. and develop innovations so that our country can quickly recover from the impact of the economic downturn.