Concept in Definition ABC

In macroeconomic terms, A situation or state of recession is characterized by the continuous decrease suffered by the Gross Domestic Product of a country determined, in other words more everyday and understandable, the recession will undoubtedly take place when ordinary people stop investing their money in cash and instead choose to keep it in their hands. Generally, this continued decrease that the economic activity of a Nation, two or more quarters, occurs as a result of economic shocks.

When the state of recession is permanent, that is, exceeds two quarters and is prolonged, usually described as depression, surely, many of you who are reading this review Have you ever heard of the economic depression that occurred in that year in X place. While, when the recession is brief in time, it is usually called an economic correction. And those more alarmist and extreme, also tend to change the term recession to that of crisis.

Saving the distances of course, the economic recession is like pregnancies, that is, in the latter it is necessary to wait three months to confirm them, while in the case of pregnancy

economy It will also be necessary to wait, approximately six months are enough for us to talk about a full-fledged recession.

But of course one can anticipate a recessive context thanks to some symptoms that usually recur in this type of scenario, such as: increase in unemploymentAs there is no growth, there is no possibility of creating new jobs and of course the chances of layoffs increase; decrease in consumption, which can be given on the one hand by the inflation either an increase in prices or a decrease in consumption capacity; increase in overdue loan portfolio, due to the inability to pay of the debtors, the increase in interest rates.

The biggest economic recession that was registered during the last century and how present it is these days as The consequence of the one looming for the next few months was the 1930 depression, which suffered a very abrupt drop stock exchange similar to the one that occurred a few months ago on Wal Street.

Issues in Recession