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WORLD RECESSION
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WHAT IS RECESSION?
.The National Bureau of Economic
Research defines:Economic recession as a
significant decline in the economic
activity spread across theeconomy.
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INTRODUCTION
A recession is a decrease of less than 10%in a countrys Gross Domestic Product(GDP).
The decrease must last for more than oneconsecutive quarter of a year
The GDP is defined as the sum of private
spending and government spending ongoods, services, labor and investment.
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HISTORY HISTORY OF U.S. RECESSION Late 2000's Recession Early 2000's Recession 1990's Recession 1980's Recession 1970's Oil Crisis Late 1960's Recession
Early 1960's Recession Late 1950's Recession Early 1950's Recession Late 1940's Recession Recession of 1945 The Great Depression Recession 1926 Post World War I Recession Panic of 1907
1870's Recession 1890's Recession Panic of 1857 Panic of 1837 Depression of 1807 Panic of 1819 Panic of 1797
http://recession.org/history/late-2000s-recessionhttp://recession.org/history/early-2000s-recessionhttp://recession.org/history/1990s-recessionhttp://recession.org/history/1980s-recessionhttp://recession.org/history/1970s-oil-crisishttp://recession.org/history/late-1960s-recessionhttp://recession.org/history/early-1960s-recessionhttp://recession.org/history/late-1950s-recessionhttp://recession.org/history/early-1950s-recessionhttp://recession.org/history/late-1940s-recessionhttp://recession.org/history/1945-recessionhttp://recession.org/history/great-depressionhttp://recession.org/history/1926-recessionhttp://recession.org/history/post-wwi-recessionhttp://recession.org/history/panic-1907http://recession.org/history/1870s-recessionhttp://recession.org/history/1890s-recessionhttp://recession.org/history/panic-1857http://recession.org/history/panic-1837http://recession.org/history/depression-1807http://recession.org/history/panic-1819http://recession.org/history/panic-1797http://recession.org/history/panic-1797http://recession.org/history/panic-1819http://recession.org/history/depression-1807http://recession.org/history/panic-1837http://recession.org/history/panic-1857http://recession.org/history/1890s-recessionhttp://recession.org/history/1870s-recessionhttp://recession.org/history/panic-1907http://recession.org/history/post-wwi-recessionhttp://recession.org/history/1926-recessionhttp://recession.org/history/great-depressionhttp://recession.org/history/1945-recessionhttp://recession.org/history/late-1940s-recessionhttp://recession.org/history/early-1950s-recessionhttp://recession.org/history/late-1950s-recessionhttp://recession.org/history/early-1960s-recessionhttp://recession.org/history/late-1960s-recessionhttp://recession.org/history/1970s-oil-crisishttp://recession.org/history/1980s-recessionhttp://recession.org/history/1990s-recessionhttp://recession.org/history/early-2000s-recessionhttp://recession.org/history/late-2000s-recession8/3/2019 World Recession
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The Great Recession
AUGUST 1929 - JUNE 1938 (110 months)
Stock market crashes all over the world were one ofthe first stages of the recession. Then, a banking
collapse took place in America, and thousands uponthousands lost work.
People who had a lot invested ended up mostly withnothing.
Businesses closed, workers ran out of work, the stockswere worthless, and even the richer class Americanssuffered some from the financial catastrophe that wasthe Great recession.
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GLOBAL RECESSION
IMF regards periods when global growth is less than3% to be global recessions. The IMF estimates thatglobal recessions seem to occur over a cycle lastingbetween 8 and 10 years. During what the IMF terms
the past three global recessions of the last threedecades, global per capita output growth was zero ornegative.[27]
Economists at the International Monetary Fund (IMF)
state that a global recession would take a slowdown inglobal growth to three percent or less. By thismeasure, three periods since 1985 qualify: 1990-1993,1998 and 2001-2002.
http://en.wikipedia.org/wiki/IMFhttp://en.wikipedia.org/wiki/Recessionhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/Recessionhttp://en.wikipedia.org/wiki/IMF8/3/2019 World Recession
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RECESSION IN USA
In 2008/2009 recession private consumption fall for thefirst time in nearly 20 years
UNEMPLOYMENT:
USA employes shed 63,000 jos in Feb 2008 156,000 jobs had been lost in September. In November 2008 533000 jobs were
eliminated. In 2008 2.6 million jobs were eliminated. Unemployment rate grew to 8.5 % in March
2009 5.1 million jobs losses till March 2009.
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OTHER COUNTRIES A few other countries have seen the rate of growth of GDP
decrease, generally attributed to reduced liquidity, sectorprice inflation in food and energy, and the U.S. slowdown.
THESE INCLUDE IN CANADA JAPAN CHINA INDIA
In some, the recession has already been confirmed byexperts, while others are still waiting for the fourthquarter GDP growth data to show two consecutivequarters of negative growth.
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CAUSES OF RECESSION
Currency crisis
Energy crisis
War Under consumption
Overproduction
Financial crisis
http://en.wikipedia.org/wiki/Currency_crisishttp://en.wikipedia.org/wiki/Currency_crisis8/3/2019 World Recession
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EFFECTS OF RECESSION
Bankruptcies
Credit crunches
Deflation (or disinflation) Foreclosures
Unemployment
http://en.wikipedia.org/wiki/Bankrupthttp://en.wikipedia.org/wiki/Disinflationhttp://en.wikipedia.org/wiki/Disinflationhttp://en.wikipedia.org/wiki/Bankrupt8/3/2019 World Recession
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RECESSION IN PAKISTANPakistans economy still not out of the woods
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PAKISTAN IS GEARED UP TO KEEP
Trade deficit to 4.3 per cent of GDP.
Current account deficit within the range of 5.9 per cent.
But it will continue to be threatened by the dangers of
domestic socio political upheavals, intensity in the
war-on-terror and global recession.
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Effect of recession
Agriculture
Prices
Assets Debts
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AGRICULTURE However, cotton and rice have registered
positive growth of 7.3 and 13.5 per cent,respectively. The combined weight of sugarcaneand maize in overall agriculture is 6.2 per cent
while that of cotton and rice is 13 per cent.
However, cotton and rice have registeredpositive growth of 7.3 and 13.5 per cent,respectively. The combined weight of sugarcaneand maize in overall agriculture is 6.2 per centwhile that of cotton and rice is 13 per cent.
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PRICES
Food inflation is estimated at 28 per centduring July-March as against 13.8 per centin the comparable period of last year.
Although food inflation has eased during
the course of the current fiscal year, thereport says it remains painfully high and
remained a major cause of concern
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ASSETS Net domestic assets (NDA) have increased by
Rs307 billion as compared to increase ofRs627.5billion in last year. However, it is
showing an increase of 7.6 per cent in stockduring this period, whereas, last year thegrowth in stock was 20.4 per cent in thecomparable period
. Net foreign assets (NFA) have recorded a
contraction of Rs263.9 billion against thecontraction of Rs356.4 billion in the comparableof last year.
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DEBTS
External Debt and Liabilities (EDL)stood at $49.7 billion or 30.7 per cent
of projected GDP for this fiscal year
This is higher than end-June 2008stock of $46.3 billion or 27.6 percentof GDP.
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CONCLUSION
When an economy is in a recession thecentral bank will typically increase themoney supplied which will help reduceinterest rates; increasing spending.When inflation is a problem, thecentral bank will typically decrease the
money supply, which will increaseinterest rates; slowing spending
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