Economic Recession

What is the Economic Recession

The Economic Recession is a general decline in economic activity. Recessions generally occur when there is an adverse decline in demand its called an adverse demand shock. An external trade shock, an adverse supply shock, or a large-scale natural disaster affect for this situation.

Through the Economic Recession, decline the economic activity spread across the market, for more than a few months. Also, Real GDP, real income, employment, industrial production, and wholesale-retail sales are deeply decreasing in this situation.

Economics Recession in India today

Today all the countries faced the Economic Decline. Because of the rapidly expanding in coronavirus across the world. Many countries are planning to control their imports, exports to a short time during Covid-19 fears in today.

As of May 4, the coronavirus infected over 42,000 people in India. 1,389 individuals passed away. The country has been in a nationwide lockdown first enforced on March 25 to April 14, later extended to May 4 to May 17 with relaxations on restrictions for some industries. The scale of the economic impact of this recession is yet to be ascertained.

How to Economic Recession Effect to the industries

In this situation, most companies cut down on their advertising. This mainly impacts of the media sector.

The banking sector faced losing money on mortgage defaults, interbank lending, and credit to consumers and businesses. That is unprecedented.

On the market, Consumers may not come back. Interest rates coming down and in the long-term, prices coming down

There is a bad impact on the pharmaceutical sector. Many hospitals have significant bank loans. They want to maintain their staff. When they are dealing with Covid-19 patients, they need new equipment, training, etc. They understand the fight but they need support.

Automobile companies have zero sales in the last month. This industry is highly concerned about the ability to restart production and revive demand.
Unless they can increase the sales, they cannot restart the productions.

The garment industry faced also that situation. They can’t export there made productions. Also, unless they received new orders, they need to stop the production.

How to Avoid of this Recession

In this situation, there is a challenge to how to revive businesses. 60 percent industry believes that it will take six months for the industry to return to normalcy and someone believes it will take a year.

Also today, many industries have overheads and costs. But they have no revenues. Therefore they need support and encouragement. Also, It is important to review demand and return confidence among buyers.

In this time economy is going into recession. There is necessary for governments involvement to reset the economy. Also, there is important to Collaboration of all.

First of all, the government need to Encourage the supply and demand.
Peoples haven’t money. Therefore the government may give money to them using loans or Subsidies like as. It creates demand and demand to create a supply. The economy gradually returns to normal.

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