2023 Recession : Careful For People With Economy Middle - Low

 

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 (an adverse demand shock). This may be triggered by various events, such as a financial crisis, an external trade shock, an adverse supply shock, the bursting of an economic bubble, or a large-scale anthropogenic or natural disaster (e.g. a pandemic).

In the United States, a recession is defined as "a significant decline in economic activity spread across the market, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales." The European Union has adopted a similar definition. In the United Kingdom, a recession is defined as negative economic growth for two consecutive quarters. ( Sources. wikipedia.org )

To make a conclusion Recession happen if the the economic growth is negative 2 times than last quarter it can affect to Global economy and make money rotation become slow.

What happen when a Reccesion occurs :

1. The decreases price of asset or stock, this can make the buying power drop and price will continous to drop below market price.
2. The unemployment rate is rising, slow economy output will trigger the rising of unemployment the reason is company will be cut the expense as much as possible to be survive in the reccesion or will go bangkrupt so the fired of employment is possible.
3. The decreases of wages for employment, as for the number one cutting as much expenses in company is the most effective choice to prevent bankrupt or negative profit.

How to Survive when Reccesion occurs :

1. Reduce as much as possible of the expenses, reducing the expenses can make you survive a little longer if something bad happen when reccesion happen.
2. Manage as much as possible the money flowing in than flowing out.
3. Saving as much as possible.

Thanks For Reading :)