Global vs. National Recessions: Is US really in a recession?
November 05, 2022 By Jozeph P
(Image Credit Google)
The economy is clearly in trouble, with stock markets collapsing and consumer prices skyrocketing. Nonetheless, the term "recession" hangs in the air as an unofficial description of the current economic situation in the United and around the globe. One of the reasons it's difficult to determine whether or not we're in a recession is that there is no single definition. Let's look at how recessions are interpreted globally and nationally, and what that means for the US economy right now.
What exactly is a recession?
A recession is defined as a significant drop in economic activity. This means that factors such as production, employment, and household expenditure all suffer. While recessions can be brief and localised, they can also be as severe as the late-2000s Great Recession, which is regarded as the most important downturn ever since Great Depression.
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Various national economies drag each other down in a set of synchronised recessions in a global recession. A regional economic shock can spread like a contagion, subsequently leading to a global economic downturn. According to the World Bank, "even a mild hit to the global economy in the coming year could tip it into recession."
There is no single strict definition of a global recession, but there are some widely accepted indicators that one is occurring. One accurate term is if the country's GDP falls for two consecutive quarters. As the world's largest economy, the United States will not be immune to a global recession.
By Jozeph P
Journalism explorer, tech Enthusiast. Love to read and write.