An Economic Recession Is Coming Soon. Get ready to welcome it!

 


Lately we have heard a lot of one word, namely recession. According to economists, a recession indicates the state of a country's economy is in decline. So what exactly is meant by this recession, what causes it, which countries have experienced it, and how to overcome it?

 

A recession is a significant decline in economic activity over a prolonged period of time, ranging from months to years. In other words, the meaning of a recession is a massive contraction in terms of economic activity. This decline is seen in real GDP, real income, employment, industrial production, and wholesale-retail sales.

 

This recession first started during the COVID-19 pandemic yesterday, at which time there were many lockdowns in various countries to reduce the spread of the virus. This lockdown causes the economic cycle to not run normally because it requires everyone to stay at home.

 

This very slow economic cycle will cause many problems such as excessive inflation, excessive deflation, asset bubbles, sudden economic shocks, imbalanced production and consumption, economic growth slumped for two consecutive quarters, Import value is greater than exports, the level of high unemployment, etc.

 

Many countries today have begun to fall. The worst was Lebanon, which had already experienced inflation of 211.43%, followed by Sudan and Zimbabwe at 192%, and Venezuela at 167%. Other developed countries such as America, Japan, and China did not escape from experiencing high inflation. America recorded inflation of 9.1%.

 

There are several things that are recommended by world economists to deal with this recession, including:


1. Maintain and maintain people's purchasing power. This can be done by the government of a country by providing social assistance and other supporting programs such as discounts


2. Maintaining and strengthening the resilience of the business world, one of which is by reducing taxes so that not many companies close because they are still making a profit


3. Prepare early, especially in the future, there will be another pandemic similar to the corona so that the economic impact that occurs can be resolved immediately


4. Continue to increase exports and investment


5. Create a lot of jobs by creating a lot of new business activities


6. Need to keep improving infrastructure

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