The International Monetary Fund (IMF) said that the world is in the face of a devastating impact due to the corona virus pandemic and has clearly entered a recession, but projected a recovery next year.
According to IMF, this It is clear that we have entered a recession that will be worse than the one in 2009, following the global financial crisis.
Stressing that while containment is the main reason for the economy to stand still and get into a recession, IMF said containment is very necessary to come out of this period and step in to recovery.
There is risk of a wave of bankruptcies and layoffs that can undermine the recovery.
There is no official definition of recession, but there is general recognition that a recession is a period of declining economic performance across an entire economy that lasts for several months.
This decline is visible in real GDP, real income, employment, industrial production, and wholesale-retail sales. A recession begins when the economy reaches a peak of activity and ends when the economy reaches its trough.
A depression is a deep and long-lasting recession that lasts for many years. In a depression the decline in GDP exceeds 10 percent.
Source : The Hindu