Recession. What is it?

Question

Well i have read that UK is going into recession within the next year. What will exactly happen and what is it?

Answer 1

A recession is when there has been two or more quarters of negative growth in an economy. What will happen is there will be more unemployment, and basic commodities such as food, gas, etc will be more expensive.

Answer 2

Well Adi, recession is a temporary falling off of business activity during a period when such activity increasing been generally increasing.

Its a slump, economic downturn.

Answer 3

The technical definition of recession is two consecutive quarters of negative economic growth. This means the total value of the goods and services produced in our economy will contract over a period of 6 months.

     This has some consequences for us. Firstly you'll notice business profits and confidence will fall meaning more redundancies are made. Therefore unemployment is likely to rise. A lot has been made recently about rising prices and inflation. In a recession inflation tends to fall as business investment falls along with consumer spending. Inflation is more likely the cause of recession rather than a characteristic of a recessionary period.

     Apart from that it is difficult to predict what will happen in a recession and indeed it's not a certainty that there will be a recession. With all the negative press attention surrounding the economy currently, it's easy to forget that whilst many of the Eurozone economies are experiencing negative growth eg. Germany, Britain still has positive growth.

Hope that helps  

Answer 4

All your answers can be found in the link below - hope this helps!

Good ol' wikipedia!