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la recession economiques vient apres une baisse d'activité et de croissance ou bien au PIB du pays
1-High-interest rates.
2-Reduced consumer confidence.
3-Reduced real wages.
inflation, mismanagement of public found, low of economic growth, low of foreign reserved
Very low savings
Increasing inflation
Increasing unemployment
Speculative finance
Weak capital movement control
recession is the general declinenig of economic growth or developent some of the cuases are increasing bank interest rate decreasing of investment
Recession is defined as a period of general economic decline. It is mostly caused by:
1.High interest rates- Increase in interest rates reduces the amount of money available for investment.
2. Crash in stock market - A sudden loss of confidence in investing can drain capital from business which eventually paralyses the economy of a country.
3.Deflation - Deflation encourages people to wait until prices are lower below they engage in business.
4. Slow down in manufacturing orders.
There are many causes of economic recession discussed in other literatures.
Recession is a situation of complete economic sluggishness, which means low demand, falling employment, low production, low income. The main reason for a recession is due to the low motivation on the part of the producers, due low expected returns from investments.
A recession is a period between a peak and a trough. Although most recessions consist of two or more quarters of declining real GDP, declining real GDP is never the only indicator in dating recessions. To capture the widely diffusive and pervasive nature of recession, a range of additional important indicators, such as employment and industrial production is considered. However, the different causes of recessions could be understood through Demand Side Shock & Supply Side Shock.
Demand Side Shock- This can be explained through fall in Aggregate Demand, which ultimately results from financial crisis, rise in interest rate which reduces borrowing and investments, Appreciation in exchange rate which makes exports expensive and reduces demand for exports, Credit Crunch which causes a decline in bank lending and therefore lower investment etc.
Supply Side Shock - This can be easily explained by higher oil prices which would increase the cost of production and causes the short run aggregate supply curve to shift to the left. This supply side shock causes lower real GDP and higher inflation.
