Global Economic Crisis

With the current economic crisis seemingly worsening I think it is time to define economic recession!

Economic recession usually describes the reduction of a country’s gross domestic product (GDP) for at least two quarters.

This means that the united states as well as many other countries around the world are currently in the middle of an economic recession. Dictionaries define economic recession as:

“a period of reduced economic activity”, a business cycle contraction.

Which although not as defined a definition it still confirms that we are in a worldwide recession.

Let’s take a look at how the US Government define economic recession:

“a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP growth, real personal income, employment (non-farm payrolls), industrial production, and wholesale-retail sales.”

A lot more detailed we start to see what the building blocks of a recession. We see things just as economic decline, changes in personal income and national GDP, and significant changes in job availability.

These three ways to define economic recession are a great way to judge the current market conditions but provide no strategy to find our way out. In the coming posts we will look at some ways that you can personally see an increase in your economic position even during an economic crisis.

Tags: define economic recession

This entry was posted on Wednesday, January 21st, 2009 at 9:09 pm and is filed under Recession. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.