The official definition of recession is ‘when the gross domestic product (GDP) of a country declines for two or more consecutive quarters of a year, the condition is known as recession’. Normally, even before recession is declared officially, the economy goes through slow down for several quarters. So what’s the reason behind recession? The answer lies in fundamentals of economics which says that, whenever an economy goes through several months and years of economic growth, the slowdown is inevitable. Growth period normally lasts for 6-10 years whereas recession is for a period of 6 months to 2 years. The current world economy has definitely entered into recession. The most powerful economy USA is going through recession and that has affected other economies as well. India is witnessing slow down and lower GDP growth projection but as a country it is yet to enter into recession. The big economies that enjoyed uninterrupted growth and development for decades are facing lack of demand from consumer side. The average spending by consumers has decreased drastically. With less demand there is bound to be less production and rising unemployment condition. Many industrial and corporate houses are churning their workforce. Stocks markets and share trading are major indicators of economy trend. A rising economy is always well reflected on the bourses. Shares prices of many renowned companies have touched the rock bottom in the current economic turmoil. Indian stock exchange has also lost more than half of its value in a period of 8-9 months. Most of the world economies including India are declaring bail-out packages for doomed industries. Several high-flying companies have come back to earth, battered and bruised. Big shots names in financial world have gone bankrupt or acquired by other companies or nationalized. The housing bubble has sent many private equity investors into tailspin. Things are definitely not rosy as can be witnessed from falling crude prices, reducing exports, low inflation and decreasing demand from consumers. Tackling recession 2009 by mohamed meeran (View MyPage) on Aug 20, 2009 01:56 PM Recession is nothing but somewhere a large amount of money has accumulated to a limited hands. So, suddenly there is a cash starvation everywhere. In India to tackle this recsssive situation, the first and foremost thing is cut in commercial lendig rates to keep up the money supply at the adequate levels in the market. So, reducing intrest rate on loans will be a big boosting factor to survive in this recession. So, RBI has to act fast in a way by liberalising lending rates.
Similar pessimism pervades the other two largest economies in the world: Europe and Japan.000. Eurozone. there should be less interest rate loans and a bit more incentives to promote construction sector.7 percent.Construction is another important activity for stabilization and growth. There is enormous uncertainty about the depth and duration of the current global
. the biggest single month figure since 1974. So. because less exports and less salalry for NRIs may contribute less US$ to the economy. A couple of weeks back
the giant Citibank had to be bailed out with several hundred billion dollars in cash and guarantees from the US authorities ("Citi never sleeps"…but apparently its management dozed off during some crucial decisions last year). Some strong indigenious growth oriented decisions are required. Which shall pave the way on reduced usage of Oil. taking the US unemployment rate to 6. in the sense of having experienced two successive quarters of negative growth. 2008 12:34 IST Share this Ask Users Write a Comment
The global financial and economic crisis keeps getting worse. Media has to play very responsible role to maintain is exaggerating the situation. Several analysts predict that the rate of contraction of the US economy in this final quarter of 2008 may be at an astonishing annual rate of 4 to 5 percent. Another one Infrastructure which has to be develpoed in a massive scale keeping in a mind that the publis has to fell pride and comfort using public mode of transport. the highest in 15 years. The US. Last week America reported November job losses of more than 530. UK and Japan [ Images ] are now officially in recession. There should be a strict cap on FDIs as the wealthy cash rich groups could expoloit the situation.
Recession: India's prospects in 2009
2 percent. including the IMF. However. industrywide indications after September are uniformly gloomy. construction.9 percent in 2009.5 percent. advanced economies at 1.recession. commercial vehicles. has been the speed at which the cumulating financial crisis has throttled real economic activity since summer 2008. the UNCTAD foresees global growth at just over 2 percent in 2009 at PPP weights and at only 1 percent at market exchange rates. As recently as July this year.4 percent and developing countries at 6. the IMF swung from plus 0. China. Equally remarkable. retail activity and many other sectors. There are reports of significant declines in output of automobiles. experts claimed that "the worst of the financial crisis is behind us". The latter number means that global growth in 2009 is expected to be at only about a quarter of the pace enjoyed in 2006 and 2007. Quite often. minus 0. Exports fell by 12 percent in dollar terms in October and advance information points to a similar decline in November. all these numbers would look even worse. only to be bush-whacked by the next big bail-out or credit seizure. the IMF foresaw the world economy growing at 3.7 percent. several Chinabased analysts foresee much sharper deceleration. Global meltdown: Complete coverage For its projections of US economic growth in 2009.1 percent. Both institutions forecast severe damage to world trade. steel. real estate. both the IMF and UNCTAD expect growth to slow to about 8. which is expected to expand at only 2 percent in 2009 as compared to over 9 percent in 2006 and 7 percent in 2007.3 percent and 5. petrochemicals. By early November (just four months later) these forecasts had been slashed down to 2. Like the IMF. The rapid onset of recession in industrial (advanced) countries has clearly overwhelmed the forecasting abilities of many institutions. For the Asian giant. finance. the economy seems almost to have gone over a cliff. textiles. What about India [ Images ]? How bad will it get for us? The official estimates of GDP growth for the first two quarters of 2008/9 stayed above 7.8 percent in July to minus 0. respectively.
.5 percent in 2009 from the scorching 12 percent pace of 2007. Interestingly. But the majority of expert opinion now concedes a substantial likelihood that this will be the worst recession since the Great Depression of the 1930s. Both the severity of the financial crisis and its massive collateral damage to the real economy have confounded the optimists over the past year. Nor does the recent "advance release" of the global outlook for 2009 by UNCTAD provide any succour.7 percent in November! And it's a safe bet that if the IMF were making a fresh set of projections for 2009 today. and much worse in impact. After September.
I would suggest that we might be lucky to achieve GDP growth of even 6 percent in 2009/10. Indeed. possibly steep enough to drag full year growth in 2008/9 to below 7 percent. we share the same planet as America. With over 60 percent of global GDP having toppled into recession. It may be far more important to actually spend the already budgeted plan expenditure effectively. they will not fully neutralize the negative impact of the severe global financial and economic crisis on India's exports. While such unprecedented monetary loosening and massive supplementary expenditures will definitely help. recent pressures on the exchange rate.000 crore (Rs 300 billion). What's more.
. a significant deceleration of India's economic growth is simply unavoidable. notably including a 1 percent cut in the repo and reverse repo rates. on a tentative basis. then there may be a case for a larger stimulus next year. On the fiscal front. I outlined the main arguments last fortnight (BS. If international oil and fertilizer prices stay at present levels. What about economic policy? Can we not deploy monetary. Monetary policy had already been aggressively loosened by early November and the RBI provided a further. there is no prospect of a quick turnaround in India. which may not be fully spent this fiscal year. In this context a 6 percent economic growth in 2009/10 will be pretty good. Though undertaken for quite different reasons. the official data are likely to record a sharp slowdown in the second half of the year..000 crore (4.if we achieve it. After all. the government had pretty much exhausted the available fiscal space through its record Rs 237. November 27). its timing may turn out to be quite fortunate. the present scope for further policy rate reductions appears limited.When available. Much will depend on the trajectory of revenues and other expenditures in a slowing economy. given the strongly recessionary conditions expected to prevail in the world economy in 2009. fiscal and exchange rate policies to insulate our growth momentum from adverse external conditions? The short answer is: only to a limited degree. Europe and Japan (and a rapidly slowing China). well-balanced package last Saturday. totaling only about Rs 30. Against this background the government was wise to limit last Sunday's "fiscal stimulus" to a modest affair. investment and consumption..5 percent of GDP) supplementary demand in October. out of which twothirds was for "additional plan expenditure". perhaps more significantly. Given the continued high rate of CPI inflation through October (latest data) and. implying low or negligible subsidy rates (looking ahead) on price-controlled domestic sales. That situation might change if external imbalances improve if a falling oil import bill and slowing non-oil imports outweigh the drop in export earnings and if capital flows stabilize.
businesses and families can’t get credit and small businesses can’t secure the loans they need to create jobs and get their products to market. The real estate has also a problem of tight liquidity situations. they are going to lose four million jobs by April 2009. specially the United States. inventories industries like garment. Even our exports to US have increased over the years.” Obama said. where the developers are finding it hard to raise finances. And they are working on existing projects only. Again. textiles. Companies in the private sector and government sector are hesitant to take up new projects. unemployment rolls are growing. How to tackle the global slump? “Our economy is shrinking. Even our exports to US have increased over the years. which comes as a bad news for India. IT industries. 2009 17:53:18 IST Views: 67961 Comments: 44 Rate: RECESSIONS ARE the result of reduction in the demand of products in the global market. India have most outsourcing deals from the US. garment and handicraft industry are worse effected. Recession in the West. Exports for January declined by 22 per cent. There is a decline in the employment market due to the recession in the West. Feb 07. Our companies in India have most outsourcing deals from the US. The one crore figure has been compiled by Federation of Indian Export Organisations (FIEO). There has also been a decline in the tourist inflow lately. chemicals and jewellery had cut production by 10 per cent to 50 per cent. Projections indicate that up to one crore persons could lose their jobs in the correct fiscal ending March. investment banking and other industries as well are confronting heavy loss due to the fall down of global economy. financial sectors. There has been a significant drop in the new hiring which is a cause of great concern for us.Impact of global recession on India
America is the most effected country due to global recession. gems.
. which says that it has carried out an intensive survey. CJ: Sonia Verma Sat. is a very bad news for our country. Exports for January have declined by 22 per cent. car industry. Recession can also be associated with falling prices known as deflation due to lack of demand of products. Some companies have laid off their employees and there have been cut in promotions. it could be the result of inflation or a combination of increasing prices and stagnant economic growth in the west. real estate owners. The textile. Together. compensation and perks of the employees. according to the FIEO survey. Federation of Indian chambers of Commerce and Industry (FICCI) found that faced with the global recession.
and the unemployment rate which rose from 5.4 per cent in 2008 is projected to fall to -0.8 per cent in 2007 and 2.8 per cent in 2006).9 per cent in 2009 (compared with 2. Recession picture If these predictions turn out to be true the prognosis is that what was a recession in 2008 could turn into a depression in 2009.4 per cent in 2009.“With the stakes this high.
. estimates that the rate of growth of world output which fell from 4 per cent in 2006 to 3. GDP growth in the OECD area which fell from 3. 2008 was a year when the recession unfolded.6 per cent in 2007 and 1.5 per cent in 2008 is projected to fall to -0.2 per cent in 2008 and a high of 9.1 per cent in 2006 to 2. is not recent but about a year old and ongoing. The recession in the US.2 per cent in 2010.5 per cent in 2008 and a high of 4 per cent in 2006) and world trade to contract by a significant 2.5 per cent in its pessimistic scenario.6 per cent to 5.
Recession in 2008! Depression in 2009
2008-12-16 09:12:59 Last Updated: 2008-12-16 10:07:50
As 2008 entered its final month. we cannot afford to get trapped in the same old partisan gridlock. Moreover. In the event.1 per cent (compared to positive rates of growth of 6.5 per cent in 2009 as per its baseline scenario and as much as -1. predictions of where the world economy is heading turned dire. the recently released preliminary edition of the OECD’s Economic Outlook for end-2008 shows that GDP in most OECD countries declined in the third quarter and is likely to fall also in the fourth. Jobs lost till now! Finally. The World Bank projected world output to grow by a mere 0. Slideshow of the day: Smart phones for work and play Other projections are even more pessimistic. Chapter 1 of the UN’s World Economic Situation and Prospects 2009. Looking back.9 per cent between 2007 and 2008 is expected to climb to 6. reports indicate.9 per cent in 2009 and 7. released in advance at the Doha Financing for Development conference. the World Bank could identify no possible driver for a recovery in the coming months.
going by the popular definition of a recession – two consecutive quarters of decline in real gross domestic product – the US is still to slip into recessionary contraction.Special: The Great Crash of 2008 Short term indicators are disconcerting.8 and 0. Most predictions. has recently announced that the recession in the US economy had begun as early as December 2007. but do not convey the real picture. differential in the distribution of the impact of the recession and a recovery in 2010 are the only positive elements in analyst predictions.9 per cent respectively. Images: Revisiting the 'Great Crash of 1929' But the independent agency which is the more widely accepted arbiter of the cyclical position of the US economy is the Business Cycle Dating Committee of the National Bureau of Economic Research.5 per cent in 2009.3 per cent in 2008 to 4. According to the OECD. as for example that of the World Bank. leading to a sharp rise in unemployment. Images: FAQs on the US turmoil This committee.” Images: The $700-b bailout czar In fact.1 per cent in 2010. Images: Financial crisis glossary Thus. That already makes the recession 11 months long. only to recover to 6. Images: Origin of sub-prime crisis There is much pessimism on how long this recession would last as well. This is mainly due to
. Thus. for most countries “a recovery to at least the trend growth rate is not expected before the second half of 2010 implying that the downturn is likely to be the most severe since the early 1980s. which has been the average length of recessions during the post-war period. hold that the decline in growth rates in emerging markets would be much less than in the US. growth in developing countries as a whole is expected to fall from 6. Preliminary estimates of GDP growth in the US during the third quarter of 2008 point to decline of half a percentage point. which adopts a more comprehensive set of measures to decide whether or not the economy has entered a recessionary phase. Images: Global leaders vow to fight financial crisis The only other quarter since early 2002 when growth was negative was the fourth quarter of 2007. But GDP growth during the previous two quarters was positive at 2.
This would intensify the financial crisis as well as dampen consumer spending. Thus. On December 5. And the month-on-month annual rate of growth of India’s Index of Industrial Production fell by 0. Yet. Second. the numbers are proving to be disconcerting. the economy. 2008. increasing the lack of certainty about a recovery. Such assumptions are indeed tenuous. would shrink by 1. is hugely dependent on exports to developed country markets.” However. even here. before the positive effects of intervention by governments materialise in full. Thus. for the first time in 15 years. which is the engine of growth in that country.000. Images: Stock indices at multi-year lows In fact. expectations now are generally that developing countries would grow at relatively high rates in normal times. China’s growth has been slipping even if still relatively high. Recovery prospects These developments make predictions of a significant growth recovery in 2010 appear optimistic.6 per cent in the fourth quarter of 2008. 2.China and India without which the figures are a more disappointing. job losses in the US are increasing the number of housing foreclosures. and 3. about 2.7 per cent respectively. According to its estimates.2 million homes will have entered foreclosure proceedings by the end of this year. according to Bank of Korea estimates. the fourth largest in Asia. Hans Timmer. who directs the bank’s international economic analyses and projections.7 per cent for full 2008. the Bureau of Labour Statistics in the US reported that employers had reduced the number of jobs in their facilities by 533. The recovery assessments are based on the assumptions that the crisis in financial markets would be resolved soon and that there would be no negative feedback loops both between the real sector and the financial sector (which would exacerbate the financial crisis) and within the real sector (which would intensify the crisis in the real economy). But nobody can ignore the fact that manufacturing. South Korea’s economy will contract in the last quarter of 2008 and grow at its slowest pace in 11 years in 2009.4 per cent in October. but still relatively creditable 5. especially the US. and another 3 per cent are at some stage of the foreclosure process. is reported to have declared: “You don’t need negative growth in developing countries to have a situation that feels like a recession. Around 7 per cent of mortgage loans were reported to be in arrears in the third quarter. taking the unemployment
. and could worsen the downward spiral. According to the Mortgage Bankers’ Association. and grow only at 2 per cent in 2009.9 and 4. A question that troubles analysts is how long this recession will last. unemployment figures suggest that at the moment the recession is only intensifying.
but because they can sell these mortgages to Wall Street banks.7 per cent. and leave untouched the backlog of unemployed and those entering the labour force during this period.5 million jobs that President-elect Obama is promising to deliver through his fiscal stimulus package would just about recover the jobs lost during the recessionary period preceding his swearing in. Needless to say. It made households whose homes were now worth much less more cautious in their spending and borrowing behaviour. investment banks and insurance companies. taking on excess risk in search of volumes. Total job losses through 2008 are 1.9 million. mutual funds. This reduction –which is the highest monthly fall in 34 years – comes after job losses of 320.000 in October and 403. And unfortunately all players were exposed to each other and to these toxic assets.
. banks. The reasons this occurred are now well known. Soon it became clear that too many people with limited or poor creditworthiness had been induced to borrow large sums by banks eager to exploit the large amounts of liquidity and the low level of interest rates in the system.rate in the US to 6. The Wall Street banks buy these mortgages because they can bundle assets with varying returns to create securities with differing probability of default that are then sold to a range of investors such as banks. The increase in sub-prime credit occurred because of the complex nature of current-day finance that allows an array of agents to earn lucrative returns even while transferring the risk. The crisis had a number of consequences in the developed countries. resulting in a collapse of consumption spending. Mortgage lenders finance these mortgages not with the intention of garnering the interest and amortisation flows associated with such lending. Origins of the crisis While 2008 was the year of crisis. the origins of this crisis go back to the middle of 2007 when evidence that homeowners who had borrowed to finance the property they purchased had begun defaulting on their debt. An unsustainable proportion of defaults seemed inevitable. Lehman Brothers and AIG.000 in September. including big players like Bear Sterns. pension funds and insurance companies. institutions at every level are not fully rid of risks but those risks are shared and rest in large measure with the final investors in the chain. This means that the 2. Mortgage brokers seek out and find willing borrowers for a fee. What was disconcerting in the events that followed was that this “sub-prime” problem soon spread and created a systemic crisis that soon bankrupted a host of mortgage finance companies. When sub-prime defaults began this whole structure collapsed leading to a financial crisis of giant proportions.
and Indonesia) have seen an
. threatening to make this crisis the most protracted in a long time. pushing them into insolvency. It proves to be one of the worst economic period for those economies. the actual effort on the ground remains fragmented and meagre. While there is wide agreement that what is needed is a globally coordinated and huge fiscal stimulus.
Indian Economy 2010 Overview: Development in the Global Economy Post Recession. Year 2009 gone well thru our expectations and year 2010 is knocking for the faster and stable recovery. Mexico. This is only worsening the financial crisis even further.It made banks and financial institutions hit by default more cautious in their lending. More India business stories A crisis of this nature requires holes to be plugged at many places simultaneously. resulting in a credit crunch that bankrupted businesses. Because of this results are disappointing. Brazil. Year 2008 is likely to be remembered as a year in which a crisis of immense proportions unfolded. Russia. The effects this had on credit and demand combined with a sharp fall in exports. It resulted in a collapse in the value of the assets held by banks and financial institutions. the so-called fastest growing economies (such as India. from $1 trillion in 2007. All of these effects soon translated into a collapse of demand and a crisis in the real economy with falling output and rising unemployment. All this resulted in a huge pull out of capital from the emerging markets: Net private flows of capital to developing countries are projected to decline to $530 billion in 2009.
Introduction to Study – It’s almost a decade since we entered into the 2000s. 2010 VMW Leave a comment Go to comments Global Economic recession is fading and the recovery process from the damages is entering another year.
Tuesday. Economic growth in these years wasn’t so impressive for the western economies. to transmit the recession to developing countries. China. 12 January. Indeed.
In this VMW research.40% 2008 7. Due to strong position of liquidity in the market. Number of companies jumped into the equity markets to raise funds to deleverage themselves.unprecedented economic expansion because. nowadays.60% 5. generate employment opportunities and the overall economic growth with the aim to reduce uncertainty in the economy and increased confidence. India’s Economic Outlook Projection 2007 GDP Growth CPI 9. capital outflow and corporate restructuring. we’ll discuss about the overall economic prospect for the year 2010 and the how the Indian Economy emerge from the ongoing economic repairment.30% 4. Rising input cost (or raw material) are forcing the corporations in the industrialized economies to shift their focus on the cost-effective region to keep up the pricing competitiveness in the specific industry. financial markets posted strong gains fueled by huge amount of capital inflows which was set-aside during the economic downturn in search of a higher yield. corporate risk have declined. It is expected that the global economies continue to stay strong in the shortterm as the effect of stimulus is still strong and the tax cuts are working. several companies betted on the better economic future and blindly raised
. Before the beginning of the economic recession. however just felt the blow of the global economic recession and the real economic growth have seen a sharp fall followed by the lower exports. Indian Economy. Unprecedented Government intervention and exceptionally large interest rate cuts by the central bank in advanced and emerging economies have contributed a lot to pull the global economy up from the deepest recession since the World War II.
Economic Prospect For Year 2010 Global economy is seems to be expanding after a recent shock. however the trend reversed from the first quarter of the year. are more conscious about the cost. global commodity prices have staged a comeback from lows and global trade has also seen a decent growth over the last two years.30% 9.50% 2010 8. research and development (R&D). Change in consumer trend is also major concern for the companies to invest more in the process of innovation.90%
Year 2009 has started on the gloomy note. Several Governments around the world launched the stimulus packages to prop up the economic growth. As the economic pace is picking up.40% 6. they are in. large corporations now have access to capital in corporate credit markets. the eastern economies were the producers and the western economies were the consumer and the same trend would likely to continue as the companies.30% 2009 7.
External Debt 2. Crores (10 Million) Public Debt (Sum of 1 and 2) 1.210. Central Government Debt in Rs. with the expectations of fresh stimulus package. inflation would be a worrisome for the economies.941.23 2.77 294. in a short run.07
. Internal Debt Q3 2008 Q3 2009 % of GDP 50.861. But.74 237. Reserve Bank of India has started printing new currency notes. inflation is expected to rise due to bounce back in demand for commodities.46 2.
Inflation Direction Since the global economies are emerging from the lows.286. Not only the realty companies which has faced that situation. Over the next few months. To finance the stimulus packages.71%
2. in order to meet the deadline to pay-off the short-term debt.099. along with India are in the strongest place for a sustained recovery. Asian economies – Chinese economy in particular.450.funds thru various options (largely in a way of debt). Many companies even offloaded their huge amount of stake. Federal authorities in India has announced the stimulus packages to propup the economic growth. India would buck the trend in inflation due to ample amount of liquidity in the system and rising demand. India Economy 2010 Overview In order to keep the economic growth during the time of worst recession. the underlying inflation are still on the downside. the new wave of optimism has surrounded the economies to expand further from the recent shock.509. shrink in unemployment rate. Higher unemployment rate in the west will lead to low wage growth and pricing power would be limited for a long time as demand will be very vulnerable to price rises. Although.67 1. expectations of the high inflation. inflation would likely to reach up to 10%. Real Estate was the hardest hit industry during the recession. higher interest rates in the emerging economies. There are increasing signs of a recovery in a private domestic demand.505. Indian Government has raised over $100 billion over the last four quarters in a way to finance the stimulus package. As the new year begins.934. resulted. actually many Small & Medium Enterprises (SMEs) have opted that option to expand themselves aggressively and routed out of the business. Country’s Public debt. according to the latest data has zoomed to over 50% of the total GDP and India’s Central bank.351. the expectations of the monetary policy tightening from the Reserve Bank of India in the second quarter review of monetary policy. According to the estimates.
could cut the subsidy burden and those savings would be use for the fiscal stimulus. There are a lot of money which are still available to readily invest into the equity markets. and safety nets will speed up the recovery consistent with the long-term growth. Increased and better expenditure with greater focus on improved outcomes in social and physical infrastructure. government deficits are in deep red and central bank rates are almost zero in certain countries and the prospect of zero rates over a longer period and deflationary concerns will probably gain the upper hand and send bond yields lower. For the equity markets. India will see sharp rise in supply side inflation. after the effect of large government borrowings.Going forward. rise in food prices due to huge gap in demand-supply. investors are still in a quest for a higher return and turned down their investments in Government Bonds/Securities. Hence. the main reason would be the overstated potential of precious metals like Gold and Silver. Interest rates will also expected to rise awkward. Moreover. Please read our latest Research on the Indian Economy ”Economy in 2010: Indian Economy To Grow 10 per cent By The year 2012. is suffering from huge debt to GDP ratio. Food. as the Equity. Sharp decline in oil prices. as the central bank will take precautionary measure to contain inflation rate and expanding money supply. there is a low scope of further announcement. to get to know to the future inflation outlook and interest rates
. considered as the best asset class to invest in. moreover India is the largest net importer of commodities like Oil. With many recovery tools were used during the crisis. volatility is expected to come down as the market timings have been extended by an hour in parallel to the other Asian equity markets. This will help the Indian markets to hit newer highs which. metal in relation to the GDP. which has seen a sharp rally last year.
Stability in the Global Economy Means Expansion of the Indian Economy All of us have seen an unprecedented government intervention during the economic recession by way of announcing huge amount of stimulus package for the economy to prop-up domestic demand. in a time of gloomy economic picture. and Latest VMW’s Research on the RBI’s Annual Monetary Policy. we have waited for more than two years. There is no extra concern on the front of equity markets. printing of new currency notes. nowadays. Indian financial markets expected to be range-bound as the fear of higher valuation would be the concern for a short while. As far as the Indian economy is concerned.
There is no one obvious cause of a recession. gross income and wholesale-retail trade.Hide links within definitionsShow links within definitions
A period of general economic decline.com/4086/recession.
. employment. Many people have been using this word. A recession is typically accompanied by a drop in the stock market. the head of the Federal Reserve. and if a recession continues long enough it is often then classified as a depression. A recession is generally considered less severe than a depression. often either the President himself. and a decline in the housing market. Read more: http://www. but only some actually knows what it actually means. industrial production. Usually recession last from 6 to 18 months.html#ixzz2jErdDnAW
What is the true meaning of Recession?
by ARC IDEA CO for News to Use October 09. Everdeclining charts for shares are setting the investors around the world into a state of panic. typically defined as a decline in GDP for two or more consecutive quarters. or the entire administration. a recession happens when there are two consecutive quarters of negative economic growth as measure by a particular country's Gross Domestic Product (GDP). 2008
We all use the word 'recession' and we heard of it a lot these days as credit crunch and financial woes sets in. although overall blame generally falls on the federal leadership. Stock markets are always in red rather than in the green. lasting a longer period which is usually more than a few months.investorwords.
What does recession actually means?
The given definition of recession should be a substantial decline in activity across the economy. From a technical point of view. The activity across the economy are reflected by various economic data like. an increase in unemployment.
So stock markets falling relentlessly does not necessary means that the economy is undergoing a recession. But recession however is something that cannot be avoided as it is considered as a part of the business cycle. it is also the most dreaded and hated part of a business cycle.
. For obvious reason.