What is An Economic Recession ?

#1. What is an economic recession - Information About Economic Recession. 

What is an economic recession - Information About Economic Recession. The development of any other country depends on its economy. The continuous decline in the economy is called economic recession. Sudden increase and decrease of tax on imports and exports by developed nations is a source of economic slowdown, it also affects other countries. 

In an economic recession, the consumption of goods decreases, due to which the goods produced are not sold. This has the opposite effect on the producing companies. On this page, information is being given about what is economic slowdown, causes, effects.

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#2. World Economic Recession ?

When there is a continuous decline in the production of goods and services at the international level and the GDP continues to grow for at least three months, then this situation is called world economic recession.

#3. Economic Recession ?

Economic recession can be understood in this way, when people lack money, they try to reduce their needs. By reducing the requirements, the goods produced are not able to be sold. Due to non-sale of goods, the profit of the company is reduced. 

The company would like to keep employees according to its benefits, due to which layoffs are done in big companies, due to which lakhs of people are unemployed. Unemployment affects their family, due to which they are unable to eat good food, this leads to increase in malnutrition.

#4. Due to the Economic Down-turn.

1. The main reason for the economic slowdown is the stoppage of the flow of money. The flow of money means that the purchasing power of the people decreases and hence they are able to save less.
2. The price of crude oil increases in the international market, due to which the inflation rate increases and people are not able to buy the things they need.
3. The depreciating price of rupee against dollar is also the main reason for this.
4. Due to the fall in exports relative to imports, the fiscal deficit of the country increases and there is a decrease in foreign exchange reserves.
5. Due to the ongoing trade war between America and China, the risk of economic recession in the world is increasing rapidly, which is also affecting India.
6. During recession, investment is reduced as the income of the people decreases.

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#5. Effect of Economic Recession.

• Economic recession leads to increase in unemployment.
• People don't have money left to spend.
• The economic growth rate keeps on falling.
• Industrial production declines.
• There is a decrease in saving and investment.
• The demand for credit decreases.

Here we have provided information about what is economic slowdown, cause, effect, if any kind of question is coming in your mind related to this information, then you can asked me through comment box.