The Causes and Effects of Global Recession.
INTRODUCTION
Here a definition a recession as well a global recession is mentioned. Some causes and effects has been listed. Due to recession occurring, I have identified the effects of recession based on Tesco.
The causes and effects of global recession.
Global financial crisis, increasing for a while, began to show its results in the mid of 2007 into 2008. Worldwide stock markets have subsided, financial institutions have dropped and governments in even the richest nations have had to develop packages to assist their financial organizations. Recession is defined as a slowdown of activities in the economy over a time. The major effect of recession is Inflation as well as currency crisis. A decrease in income may be another effect of recession in the economy. As persons try to save more, this reduces sales therefore there is a result of no profits. Another effect may be increase in mortgage rates. At the time of recession, lenders tend to increase rate in order to cover their losses. While in recession employment occasions are reduced since companies tend to cut down on these opportunities thus leading to unemployment in the economy.
Countries around the world are being driven into recession as the economic downturn deteriorates. In Europe, Germany, Italy, Ireland and Denmark they have all suffered two consecutive quarters of economic decline the first is the technical definition of a recession and secondly it was already present before. Japan joined the list as it surprised economists and reduced in size in the ending of the year. The UK economy shrank in the third quarter of 2008, and is expected to contract through most of 2009. Many are expecting a new world order with economic power shifting to countries in the east who are better placed to weather the downturn. However, developing economies rely on the west to buy their goods, so recessions in the US and UK will also hurt them. This was according to
Here a definition a recession as well a global recession is mentioned. Some causes and effects has been listed. Due to recession occurring, I have identified the effects of recession based on Tesco.
The causes and effects of global recession.
Global financial crisis, increasing for a while, began to show its results in the mid of 2007 into 2008. Worldwide stock markets have subsided, financial institutions have dropped and governments in even the richest nations have had to develop packages to assist their financial organizations. Recession is defined as a slowdown of activities in the economy over a time. The major effect of recession is Inflation as well as currency crisis. A decrease in income may be another effect of recession in the economy. As persons try to save more, this reduces sales therefore there is a result of no profits. Another effect may be increase in mortgage rates. At the time of recession, lenders tend to increase rate in order to cover their losses. While in recession employment occasions are reduced since companies tend to cut down on these opportunities thus leading to unemployment in the economy.
Countries around the world are being driven into recession as the economic downturn deteriorates. In Europe, Germany, Italy, Ireland and Denmark they have all suffered two consecutive quarters of economic decline the first is the technical definition of a recession and secondly it was already present before. Japan joined the list as it surprised economists and reduced in size in the ending of the year. The UK economy shrank in the third quarter of 2008, and is expected to contract through most of 2009. Many are expecting a new world order with economic power shifting to countries in the east who are better placed to weather the downturn. However, developing economies rely on the west to buy their goods, so recessions in the US and UK will also hurt them. This was according to