A recession is a period of economic decline, usually defined by two consecutive quarters of negative growth in gross domestic product (GDP).
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The main factors behind this were the impact of the new coronavirus variant, the uncertainty over Brexit, and the reduced consumer spending due to lockdowns and social distancing.
The main reasons for this were the natural disasters that hit the country, the trade tensions with China and the US, and the low consumer confidence and demand.
The main drivers of the growth in the US were the strong consumer spending, the fiscal stimulus from the government, and the rapid vaccination program.
Recession can have negative effects on the economy and society, such as rising unemployment, falling incomes, lower tax revenues, higher public debt, lower investment, and social unrest.
cutting interest rates, increasing public spending, providing tax relief, supporting businesses and workers, and boosting confidence and demand.
The prospects for recovery depend on many factors, such as the speed and effectiveness of the vaccination campaigns, the easing of the lockdown measures, the resolution of the trade disputes, and the coordination of the global efforts.
Read in detail: How did it happen and what Next?
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