Recession is here, step back! You can get ample ofdefinition regarding recession from television, News channels, Newspapers,Magazines, and Financial reports. Every one is talking about recession and howthey are going to get affected from it. Recession in general means thereduction of a country’s gross domestic product (GDP) for at least twoquarters. Before going deep into recession, we need to first understand whatGDP actually means. Gross domestic Product is the value of all final goods andservices produced in an economy in a given year. These final goods are thosethat are converted into other goods. These goods are evaluated as per theirmarket value. It means when the value of all final goods and services producedin a given year declines for two consecutive quarters, the state is referred toas “Recession”. 

According to the reports produced by NBER (National Bureauof Economic Recession), USeconomy system has experienced 10 recession period since the end of World WarII. The period between 1930 to the end of 1939 were considered as a decade oflow profits, high unemployment, low price of goods, and high poverty. The US experienced oneof its biggest recession in 2001, ending tem years of growth. When we talk aboutrecession few question knocks our mind. Few among them are: What are the causesof recession? Which countries are going to be effected? What the effects ofrecession? And what we should do during recession?

There are many causes of recession, few among them are:Currency crises, Energy crises, War, under consumption, over production, andFinance crises. Recession that started in the year 2008 was not limited to US,also affected some of the developing countries such as Canada, Japan,Australia, China, New Zealand,and India.In some countries recession has been declared while in other, still waiting forforth quarter GDP report. Indiais one among those badly effected countries. Effects of recession are bankruptcies,credit crunches, deflation, foreclosures, and unemployment. Recession has no particularSets in or Sets out time period, therefore prediction for recession is verydifficult.

According to the report submitted by ILO (InternationalLabour Report organization), it has been clear that Asia is likely to have 7.2million plus people jobless till the end of 2009, as due to the fall of globaleconomic crises, raising to 5.1% jobless rate. Last year unemployment rate was4.8% that clearly indicated that Asia is goingthrough tough recession period.

As recession is in the air we should and have tofight against it. Tax cuts are the first step that a government opposingrecessionary trends or a full fledged recession process to do. Recession is apart of normal economic cycle. We should make our self strong enough both mentallyand financially to tackle such recession which are going to arise in the near future.

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