Ekonomi

What Is Recession, What Does It Mean? What Does Recession Mean in the Economy?

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The question of what is a recession remains the subject of research. In the second quarter, the USA shrank by 0,9 and entered recession by contracting consecutively. So what does Recession mean?

The question of what is a recession and what it means remains a research topic. The US economy contracted by 0,5 percent in the second quarter, in response to the 0,9 percent growth expectation. Thus, it entered recession by contracting two quarters in a row. After the development, the questions of what is a recession and what does it mean came to the fore.

WHAT IS A REcession, WHAT DOES IT MEAN?

Recession means economic contraction. As a result of the stagnation caused by record inflation in global markets, the rise in global interest rates continues unabated. As the stalemate puts the economy in a bottleneck, recession concerns occur. A recession, traditionally in macroeconomics, is a situation in which real gross domestic product (GDP) shows negative growth for two or more consecutive quarters. In short, it can also be called a recession in the economy. A country with negative growth for two consecutive quarters enters a recession, that is, an economic recession.

WHAT CAUSES THE REcession?

Some of the reasons for the recession include; economic growth falling below the population growth rate, per capita national income declining or turning into a stagnant state, unemployment increase, stagnation or regression in economic activities and decrease in production activities.

HOW TO ENTER THE REcession?

Recession can be defined as the period of recession that begins with the shrinking of the country's economies twice in a row. The country's economies entering recession may be due to the following reasons;

  • Economic growth falling below the population growth rate
  • Declining or stagnating per capita income
  • Unemployment increase
  • stagnation or regression in economic activities
  • Decline in manufacturing activities

WHAT HAPPENS TO THE DOLLAR IF THE US ENTERS REcession? DECREASES OR INCREASES?

According to the second quarter growth figures from the USA, the US economy entered recession. The US economy contracted 0,9 percent in the second quarter. The US economy, which shrank for two consecutive quarters, has officially entered recession. It is eagerly awaited how the world markets will react in the face of the recession.

After the coronavirus pandemic and the Russia-Ukraine war, many countries around the world faced the danger of recession. One of the countries where the pandemic continued its effects was the USA. After the US entered recession, the details about the concept became a matter of curiosity.

Technical recession data from the US economy worried many investors. Investors with dollars and gold also came under the pressure of recession. The recession will affect the dollar and gold markets, as well as deeply affect the world economies.