GLOBAL RECESSION 2009

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By divya

Published: August 10, 2009

The Global Recesion had been a great Shock for the entire world resulting in a huge loss to all the individual countries in all respects.

All About RECESSION

Recession is a slowdown or decline in the economic activity or the fall of GDP of a country for 2 or more consecutive quaters. When such a situation happens, the government plays a key role in stabilizing the economic activity by taking various measures.

Global Recession – Impact on INDIA

The global recession had a very deep impact not only on India but other countries too. When U.S economy is affected, which is supposed to the strongest one, it’s contagious. The whole of Asia is affected due to a slowdown in U.S economy.

Since India has been closely working with America through “outsourcing”, it has been affected badly resulting in huge losses in multiple crores  in all respects viz. business, exports, job loss etc. The worst affected sectors were Automobile Industry, IT industries, Export industries etc. The Global Recession resulted to the following;

• Fall in Demand of products and services
• Production of goods put on hold
• Lay-Offs
• Job Loss
• No recruitments
• Increasing Unemployment
• Decline in Share prices
• Market Crash etc.

How to Cope up RECESIION

Usually the government plays a key role in stabilizing the economic activity. They take measures to stabilize the situation. The first thing they do is Cut down taxes. The U.S government proposed a $150 Billion package in tax cuts. It also increases its spending to create more jobs.

Tagged with: GDP, Global Recession 2009, Government, Impact on India

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