Impact of Recession

Presented By :Prashant Kumar

Introduction of Market Economy

Before understanding the Recession , we need to understand the market economy. There are two stage of market Economy. 1. Growing market economy. 2. Declining market economy.

Growing Market Economy

Declining Market Economy

Recession
 what is recession:In economics, the term recession generally describe the reduction of the country s GDP for at least two quarters.

Recession and Depression

There is a joke that economists quote to explain the Difference Between recession & "Depression

RECESSION= WHEN YOUR NEIGHBOUR LOSES HIS JOB DEPRESSION = WHEN YOU LOSE THE JOB

Cause of Recession
Currency crises:- Frequent change in international currency rate. Energy crises:- Usually refers to the storage of oil and additional to electricity or other natural resources of energy. War:- Ruins the country property. Refers to related to economy. Under consumption:- Insufficient consumer demand relative to the amount produce Over production:- Excess of production over consumption. Financial crises:- Some financial institutions or assets suddenly lose a large part of their value.

Impact of Recession
Sales revenues and profits decline Falling Stocks and Slumping Dividends Credit Impairment and Bankruptcy Employee Lay-offs and Benefit Reductions Cuts to Quality of Goods and Services Reduced Consumer Access A Recession's Impact on Small Businesses