A recession is defined as a period of declining economic activity, measured by a country's gross domestic product, for at least two consecutive quarters. Common causes of recessions include currency crises, energy crises, underconsumption, overproduction, and financial crises. The impacts of a recession include decreased production, rising unemployment, and an unhealthy stock market. Governments can help stimulate the economy to recover from a recession through fiscal policies like tax cuts and increased spending, and monetary policies enacted by central banks including lowering interest rates and increasing the money supply.

1. RECESSION
BY SHOSHITH

2. Road map
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What is recession?
Causes of recession
Impact of recession
How to come out of recession.

3. WHAT IS RECESSION?
In economics, the term recession
describes the reduction of a country's
gross domestic product (GDP) for at
least two quarters.
The usual dictionary definition is "a
period of reduced economic activity"

4. • In macroeconomics, a recession is a
decline in a country's gross domestic
product (GDP), or negative real
economic growth, for two or more
successive quarters of a year

5. Causes of recessions
• Currency crises
• Energy crisis
• Under-consumption
• Overproduction
• Financial crisis

6. Currency crises
A currency crisis, which is also called a
balance-of-payments crisis, occurs
when the value of a currency
changes quickly, undermining its
ability to serve as a medium of
exchange or a store of value. It is a
type of financial crisis and is often
associated with a real economic crisis

7. Energy crisis
An energy crisis is any great bottleneck (or
price rise) in the supply of energy
resources to an economy. It usually refers
to the shortage of oil and additionally to
electricity or other natural resources. An
energy crisis may be referred to as an oil
crisis, petroleum crisis, energy shortage,
electricity shortage or electricity crisis

8. Underconsumption
In underconsumption , recessions
and stagnation arise due to
inadequate consumer demand
relative to the amount produced

9. Overproduction
In economics, overproduction
refers to excess of supply over
demand of products being
offered to the market. This leads
to lower prices and / or unsold
goods

10. Financial crisis
The term financial crisis is applied
broadly to a variety of situations in
which some financial institutions or
assets suddenly lose a large part of
their value

11. How to know recession?
Indicators to say a nation is in recession;
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- People buying less stuff
Decrease in factory production
- Growing unemployment
- An unhealthy stock market

12. IMPACT OF RECESSION ON IT
SECTOR
The impact of Recession is
unpredictable. The main effect of
recession is in IT sector and is mainly
related to the job loss and
unemployment

16. How to come out of recession?
It is unhealthy for any nation to be in
Recession;So, Government will take certain
countermeasures to eliminate or reduce the
Effect of recession for turnaround;
Important Point:
Today, it is a market Economy
Producers;
Can produce and
sell at their
prices
Consumers;
Can decide to
buy or not;

17. But, Government does not have direct control
on Producers’ & the Consumers’ behavior;
But, they can influence millions of Producers
& Consumers with Government’s policies;
Government has 2 plans
Fiscal
Policies
(By Govt.)
Government influences the
economy by changing how
it (Government) spends
and collects money
Monetary
Policies
(By RBI)
RBI manipulates
the available supply of
money in the country

18. Fiscal
Policies
Government influences the economy by changing
how it (Government) spends and collects money
1] Tax cuts for
businesses or
for individuals
More money
available for
spending
2] More
Spending
by Govt. to
create jobs
Individuals get
salary and
spend
money
3] Automatic
fiscal policy;
Unemployment
Insurance
Some income to
unemployed
people to spend
Demand
picks
up;
Market
can
recover;

19. Monetary
Policies
Government manipulates the available supply
of money in the country
1] Reduce
reserve
ratio
More money
available for
bank
to give loans
2] Lower the
interest rates
Individuals take
more loan
3] Use its own
reserved
money to buy
Govt. bonds
It becomes an
income to Govt.
to inject money
into the market
Demand
picks
up;
Market
can
recover;