How to ensure the Economic Recession ?
The United Kingdom is currently experiencing a 20 Percent economic decline (Negative GDP growth) for the second quarter of the year 2020. Most of the economists were also say it is heading for a fall which is not seen in the last 100 years. The United States were also experienced around 33 Percent (- 32.9 Percent) economic downturn in the Q2 2020.
An Economic Recession is a temporary slowdown or decline in the numbers on Industrial Production and Trade. The Recession generally indicates that the Country’s GDP is gaining Negative growth for the two consecutive quarters. The Industry will have not much growth in times like this.
Most companies would experience a decline in their Earnings and few may declare the Net Losses. This has led to a slowdown in the Country’s Economic growth. At the Same time, the period of recession is not well defined.
It can last from a few months to Several years. We cannot say for sure when this situation will be corrected. However it is not said to be as Permanent. A Developing Nation cannot eliminate the Recession at all. It is applicable for the Global Economy also.
Sometimes the recession would help to review the Economy numbers – GDP, Industrial Production, Trade, Inflation and the Interest rates. We cannot know how long the recession would be, but we can confirm with certain factors whether the recession is going to happen or not.
- No Demand or Weak Demand Consumption
- Negative growth on Industrial Production
- Declining Interest Rates and Availing Low rates
- Negative GDP for Two consecutive Quarters
- Business Earnings are not good, Rising unemployment rate
- Stagflation & Slowdown period of More than 6 Months
One can evaluate the data available and confirm the recession is there or not, by using the above Economic factors.
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