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Management Challenges in era of Global Recession

Prepared by: Tosha Gadhia

Global Recession

In economics, recession means reduction of a countrys gross domestic product (GDP) for at least two quarters. IMF regards period when global growth is less than 3% then it tends to be a global recession.

Predictors of Global Recession

In the US a significant stock market drop has often preceded the beginning of recession. Inverted yield curve. The three month change in the unemployment rate and initial jobless claims. Index of Leading (Economic) Indicators.

Causes of Recession

Currency Crisis. Inflation. National Debt. Speculation and economic bubbles War. Excessive interest rates. Under consumption. Overproduction.

Challenges of Management

Bankruptcies. Banks lending less money. Foreclosures. Deflation. Reduced Sale. Stock market crash. Unemployment.

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