a tale of economic destruction, IIITB pptx

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1. Indian Institute of Information Technology, Bhopal Professional Communication Presentation Topic RECESSION “A T ale of Economic D ecline & Financial H ardships” Submitted By- Satyam Khare & Shivam Singh In Care Of- Dr. Deepak Kumar

2. Recession “A Tale Of Economic Decline & Financial Hardships”

3. Contents What is Recession ? Why do Recessions Happen ? Current Recession - Causes of Current Recession Effects of recession Tech vs. Non-Tech during Recession Solution ?

4. What is recession For more than a year now, barely a day has passed that we have not heard dire economic news about not just India but U.S., Europe & even Japan. Unemployment has been Rising, Company’s profits have been falling, Financial markets have been tumbling and the Housing S ector has been collapsing. Is there a single word to describe these phenomenons as a whole? Yes, “ RECESSION ”

5. What is recession Defining Recession Period of Decline in Economical Activity. (Very short periods are not considered as Recessions.) - Two Consecutive Quarters of decline in a country’s real (inflation adjusted) GDP. (Focus on GDP alone is narrow, and it is often better to consider a wider set of measures of economic activity to determine whether a country is indeed suffering a Recession) * So what exactly is Recession ?

6. What is recession “a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in production, employment, real income, and other indicators. A recession begins when the economy reaches a peak of activity and ends when the economy reaches its trough.” NBER (National Bureau of Economic Research) NBER defines it, not by just considering GDP of a country but also other factor like employment, income, sales and industrial production etc. to analyse the trends in economic activity. Also, this process takes time.

7. Why do Recessions happen? There isn’t any one particular reason to which we can say that that Recessions occur due to this but it’s compounding or say, more than one reason due to which Recessions happen.

8. Economic Indicators of a Recession Several key economic indicators signal the onset and severity of a recession. One of the most widely used indicators is the gross domestic product (GDP), which measures the total value of goods and services produced in an economy. A decline in GDP for two consecutive quarters is generally considered a sign of a recession. Other important indicators include unemployment rates, inflation, consumer confidence, and industrial production. 1 Unemployment Rate The unemployment rate measures the percentage of the labor force that is unemployed but actively seeking work. During a recession, unemployment rates tend to rise as businesses reduce their workforce in response to declining demand. 2 Inflation Inflation refers to a sustained increase in the general price level of goods and services. High inflation can erode purchasing power and negatively impact economic growth. 3 Consumer Confidence Consumer confidence reflects the overall optimism of consumers about the economy. It can be measured through surveys and is closely related to consumer spending, which is a major driver of economic activity. 4 Industrial Production Industrial production measures the output of factories and mines. Declines in industrial production can indicate a slowdown in manufacturing activity, which is often a leading indicator of a recession.