When the nation is in the early part of a recession, nobody knows for sure if it is actually a recession or not. The economy might turn around the next day, which would mean the contraction was just a temporary decrease in activity along a mostly upward track. Economists don't know if the economy is in recession until they can gather data over an extended period of time -- typically six months or more.
There is no strict definition for recession. Different people consider different factors when making the assessment.
Some economists and journalists define a recession as two consecutive quarters (three-month financial periods in the year) in which the gross domestic product (GDP) decreases. The GDP is the value of all the reported goods and services produced by people and institutions operating in a country. An overall decrease in the value of goods and services indicates that demand has decreased in most markets. If this is the case, it's a good bet that companies have laid people off, so unemployment is up. Usually the stock market is also in bad shape when overall value is decreasing. In general, the GDP is a pretty good indicator of the overall state of the economy.
Hey mate,... I am not sure wat is recession is...! I am happy as long as my job is secured...! May be selfish..1 But that wat all want I guess.
Anyway...Hey Rafeed...I guess I know u some how. I would like to talk to you if u found this message. Or mail me to this id..! ( blaze_svy@yahoo.com) I am sure I know you quite closely but never met. Old relation mate. Thanks. Blaze.
When the nation is in the early part of a recession, nobody knows for sure if it is actually a recession or not. The economy might turn around the next day, which would mean the contraction was just a temporary decrease in activity along a mostly upward track. Economists don't know if the economy is in recession until they can gather data over an extended period of time -- typically six months or more.
ReplyDeleteThere is no strict definition for recession. Different people consider different factors when making the assessment.
Some economists and journalists define a recession as two consecutive quarters (three-month financial periods in the year) in which the gross domestic product (GDP) decreases. The GDP is the value of all the reported goods and services produced by people and institutions operating in a country. An overall decrease in the value of goods and services indicates that demand has decreased in most markets. If this is the case, it's a good bet that companies have laid people off, so unemployment is up. Usually the stock market is also in bad shape when overall value is decreasing. In general, the GDP is a pretty good indicator of the overall state of the economy.
Hey mate,...
ReplyDeleteI am not sure wat is recession is...! I am happy as long as my job is secured...! May be selfish..1 But that wat all want I guess.
Anyway...Hey Rafeed...I guess I know u some how. I would like to talk to you if u found this message. Or mail me to this id..! ( blaze_svy@yahoo.com)
I am sure I know you quite closely but never met. Old relation mate.
Thanks.
Blaze.