A recession is a great time to learn Business English. When the economy is in freefall or limping out of a full-blown recession (as is the case in New Zealand, which saw a growth rate of 0.7 percent in the last quarter), people often step up to do something in which they believe, perhaps as entrepreneurs.
There is the issue of uncertainty, uncertainty about the world’s economic outlook and what the future holds. In a world of uncertainty, and there is plenty of that, people may feel they would be better placed if they were entrepreneurs, in other words, doing something for themselves rather than working in a corporate environment.
What is happening in the global economy, and what indications are there that it is in recession? Here’s some background and why learning Business English is so important.
The global economic outlook is grim as the world economy faces uncertainty, a changing world order, isolationism, and more protectionism in the form of tariffs. In the latest forecast by the OECD, the world’s economy is projected to grow 3.1 percent in 2025, down 0.2 points from its December forecast. The world economy is expected to grow by only 3 percent in 2006. The report cites current and future tariffs imposed by US President Donald Trump as the main reasons for the downward projection. The prediction also assumes that the US maintains the 25 percent tariffs on steel and aluminum imports and may increase them. The US is also likely to go ahead with additional tariffs on China, Canada, and Mexico, and these countries will hit back with their own levies. The EU and Canada have already hit back with the announcement of retaliatory tariffs on American goods.
By country, the OECD cut its growth projection for the US by 0.2 points to 2.2 percent, down from 2.8 percent this year. Growth is also forecast to be 1.6 per cent in 2006. Canada is down 1.3 points to 0.7 percent, and Mexico 2.5 points to minus 1.3 percent. As for the eurozone, the OECD believes that heightened geopolitical and policy uncertainty is still likely to restrain growth. It downgrades the bloc by 0.3 points to 1.0 percent.
The OECD expects Japan’s growth to be 1.1 percent in 2025, down 0.4 points from the previous forecast. It also warns against further fragmentation of the global economy and the use of tariffs. It says that higher and broader trade barriers would hit growth worldwide and add to inflation.
It goes on to say that higher-than-expected price growth would prompt a more restrictive monetary policy and could give rise to “disruptive repricing” in financial markets.
Annual real GDP growth in the United States is projected to slow from its robust recent pace to 2.2 percent in 2025 and 1.6 percent in 2026. Euro area real GDP growth is projected to be 1.0 percent in 2025 and 1.2 percent in 2026, as heightened uncertainty keeps growth subdued. Growth in China is projected to slow from 4.8 percent this year to 4.4 percent in 2026.
How does learning Business English fit into this? Whatever the case learning Business English is your passport to success. While I have written extensively about why you should learn business English (go to the blog section on www.learnbusinessenglish.net) one of the most compelling reasons to learn Business English is to hone your negotiation skills.
Several things make for good negotiators. The first is that they embrace silence. In other words, they listen carefully (communication is not always about talking). They seek clarity relentlessly and validate opposing views, which disarms the opposition. They also decline offers; that is, they comfortably say “no” and ensure boundaries are enforced. This also means they resist early commitment. They also interpret body language well- an important skill negotiators have. Non-verbal clues often reveal a great deal about the opposing party.
These are only some ways that learning Business English can help you. Whatever your reasons, it’s important to learn Business English. It’s your passport to success.