GLOBAL RECESSION

Sudoman


“As sure as the spring will follow the winter,
prosperity and economic growth will follow
recession. “
 CONTENTS


Introduction

Attributes of recession

Predictors of recession

Stock market and recession

History of recession

United states recession

US crisis hits India

Causes of recession

Effects of recession

Remedies

Conclusion
 INTRODUCTION


In economics, the term recession generally
describes the reduction of a country's gross
domestic product (GDP) for at least two
quarters.

a period of reduced economic activity.
 Cont....


a significant decline in the 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
 Attributes of recession


In macroeconomics, a recession is a negative
real economic growth, for two or more
successive quarters of an year.

A recession has many attributes that can occur
simultaneously and can include declines in
coincident measures of activity such as
employment, investment, and corporate profits.
 Predictors of recession


In the U.S. a significant stock market drop has
often preceded the beginning of a recession.

Inverted yield curve

The three-month change in the unemployment
rate and initial jobless claims

Index of Leading (Economic) Indicators
 Stock market and recession


Some recessions have been anticipated by
stock market declines.

The real-estate market also usually weakens
before a recession.
 History of recession


Global recessions:Economists at the
International Monetary Fund (IMF) state that a
global recession would take a slowdown in
global growth to three percent or less.
 United States recession


Great Depression - August 1929 to September
1939: longest (and deepest) recession of the
20th century

January-July 1980 and July 1981-November
1982: 2 years total

July 1990-March 1991: 8 months

March 2001-November 2001: 8 months

December 2007-January 2009: 13 months and
counting.
 US Crisis Hits India


“when the United States sneezes,the rest of the
world may well catch a cold....” Rich Miller.

US faced major crisis because of

Subprime mortage crisis.

Rising oil prices

Global inflation

High unemployment rates

A declining dollar value.
 Causes of recession


Currency crises

Energy crisis

War

Underconsumption

Overproduction
 Effects of recession


Bankruptcies

Credit crunches

Deflation (or disinflation)

Foreclosures

Unemployment
 Remedies


The accurate and effective remedy to prevent
and overcome global recession is global
perspective.

RBI needs to neutralise the outflow of money.

Public should spend wisely & save more.

In IT sector there should be correction in salary
offerings rather than job cutting.
 Cont..


Taxes including excise duty and custom duty
should be reduced.

In real estate the builders should drop prices.

Government should try and improve liquidity.
 CONCLUSION


“we are not in recession.we are not going to be
in recession.Recovery is on the horizon.The
decks are clear.The economy is in direct drive.”
THANK YOU