What Is Economic Stagnation?
The so-called economic recession refers to the phenomenon of economic stagnation or negative growth. The recession is manifested by a general decline in economic vitality and the consequent massive unemployment of workers.
Economic recession indicator
Right!
- Chinese name
- Economic recession indicator
- Explanation
- Refers to economic stagnation or negative growth
- influences
- Lead to simultaneous decline in multiple economic indicators
- in accordance with
- GDP, productivity, profit and employment
- The so-called economic recession refers to the phenomenon of economic stagnation or negative growth. The recession is manifested by a general decline in economic vitality and the consequent massive unemployment of workers.
- A severe recession is defined as a depression. A devastating recession is considered an economic collapse. The recession is related to excess commercial inventory, declining consumption (possibly losing confidence in the future), lack of technological innovation and lack of capital accumulation, and randomness in the stock market.
- As for what conditions can be considered as a recession, different countries have different definitions. In general, there are two interpretations of the term "recession."
- The first explanation is also the most common, that is, if the gross domestic product (GDP) declines for two consecutive quarters a year. It can be defined as a recession. Although this definition is widely used, it is not completely accepted by countries around the world.
- Another definition is based on the fact that if most economic sectors have experienced a major decline in productivity, profits, turnover and employment rates for 6-12 months, it can be considered a recession. The recession is defined as a more vague "several months of decline in economic activity in most sectors of the economy."
- The economic downturn may cause multiple economic indicators to decline at the same time, such as employment, investment and corporate profits. Other accompanying phenomena include falling prices (deflation). Of course, if the economy is in a state of stagflation, prices may rise rapidly.