Economic Recession- Current situation and Affected Areas
The economic recession has not left any sector unaffected. From big and small corporate houses to the simple common man has been affected by the credit crunch that has set in worldwide. There are several factors that have led to the economic recession of the recent times.
One of the most important among them is the rise in the prices of oil, which has consequently led to an increase in the price of food. This is mainly because the production of food is dependent on the transportation and production processes of oil.
The corporate houses have been greatly affected by the slowdown of the economy. With several big companies closing down and some becoming bankrupt, a lot of people lost their jobs. The companies that survived asked their employees to take salary cut offs. Many companies performed layoffs of their employee in huge number. All this led to an increased rate of unemployment. People became jobless and there were no good job opportunities being created in the market.
The stock market saw a great decline. As the bad news about the economy grew, investors became alert and people stopped investing in the stock market. There became more sellers than buyers in the stock market. Economists and stock market advisors had mixed opinion about the market. Some said that it was a great time to invest as the market would stabilize soon, while others warned strictly against investing.
As a result, investors stayed away from the risk of loosing their money during recession setback and consequently the stock market collapsed.
It all started with the US economy declined in 2008, and very soon the wave spread across the world, engulfing the entire world into a state of economic recession. The economy of US is considered the largest economy in the world. It went into recession due to reckless financial practices. Very soon the economic recession hit other major countries like Denmark, Sweden, Britain, New Zealand, Australia, Japan, and Canada.