ECONOMIC RECESSION

2020

Isha Jain
 Defining Economic Recession

In economics, a recession is a business cycle contraction when there is a general decline in

economic activity. Recessions generally occur when there is a widespread drop in
spending.

Economic recession is a period of general economic decline and is typically accompanied

by a drop in the stock market, an increase in unemployment, and a decline in the housing
market. Generally, a recession is less severe than a depression.
 SLOWDOWN and RECESSION

An economic recession signifies a drop in the gross domestic product (GDP), while a
slowdown is merely a decline in the growth rate of the GDP.
 CAUSES

The effect of demonetization

Rollout of GST
Too much debt
Collapse in private consumption and investment freeze
Global Slowdown
Coronavirus
PREVIOUS RECESSIONS

FY58 – ballooning import bill

FY66 – severe drought and wars
FY73 – energy crisis
FY80 –  Balance of Payment crisis
 IMPACT

Unemployment
Fall in asset value
Increased inequality and increase in relative poverty
MSMEs going out of business
Tightening credit
 TAKEAWAY

Don’t put all your eggs in one basket

Save for contingency
BOUNCEBACK

How the Indian economy recovered

 BIBLIOGRAPHY

– https://www.businesstoday.in/latest/economy-politics/story/fact-check-this-is-not-indi
as-first-recession-its-5th-278678-2020-11-13
– https://timesofindia.indiatimes.com/business/india-business/first-technical-recession-
sensex-at-50k-how-economy-performed-in-2-years-of-modi-2-0/articleshow/83085454
.cms
– https://www.economicshelp.org/blog/5618/economics/negative-impact-of-economic-
recession/
– https://www.imf.org/en/News/Articles/2021/11/02/na111121-indias-economy-to-reb
ound-as-pandemic-prompts-reforms
THANK
YOU