ECONOMIC RECESSION

ECONOMIC RECESSION By Deepak

According to Oxford Dict. A difficult time for the economy of a country when there is less trade and industrial activity than usual .

According to(NBER)The United States-based National Bureau of Economic Research defines economic recession as: "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP growth, real personal income, employment, industrial production, and wholesale-retail sales."

It is a private and non profit research organization dedicated to science and experiment of economics. It is committed to undertaking and disseminating unbiased economic research among public policy makers, business professionals and the academic community.

Disseminating To spread information ,knowledge so that it reaches many people.GDP:- The total market value of all goods and services produced by a country in a one year.GDP = consumption + investment + (government spending) + (exports imports), or, GDP = C + I + G + (X-M) .

Firstly Recession arises in United States and Europe.

Then it spreads all over the world it effects more in the Europe,US,China, Russia etc.

Because In US the banks gave credits without any consideration and most off the housing loans are not getting repaid and many banks are not able to get back the money and went bust and are recovering with Government support.

Indian Economy Economy of Europe Economy of US

-VE EFFECTS Some of the small Business went Broke.

Indian stock market (BSE)have crashed around 13%.If want more about this search www.stockstakes.com

Indian IT sector went to be slow down.

+VE EFFECTS When recession arises in US, Indian economy Boom at that time.

At that time more of the foreign investors invest there capital in our market.

-VE EFFECTS The GDP rate drop into 0.2% in the Euro zone. The prices of row materials rise. Inflation running on 15% at that time. Europe manufacturing lost 3million jobs in the past few years. Businesses are expanding more slowly. Employment is falling.

Economy of US. -VE EFFECTS The Global growth was slow to 3.7% on the other hand the US growth was going to remain very sluggish i.e. (Less than 1 %). At that time the main problem in US is Unemployment problem.

Ex:-Due to Economic Recession, German Auto Firms Cut Production

As the global Economic Recession ravages the auto industry, German carmakers and car parts manufacturers are forcing their employees not only to take extended holiday breaks but also to work fewer hours.

How it Control? According to me if the governing bodies like SEBI,our indian govt. taking various strict steps than the economic Recession may cease. The proper maintenance of public services.The proper maintenance of investment in science and R&D because of the pressures on the private sector.