Sunday, March 23, 2008

Recession

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. The Recession is said to occur whenever the GDP of a country crosses below the zero mark.

Effect of Recession on stock markets
The Great fall in stock prices need not be due to the recession. There are many reasons for the stock market prices fall. Even though there is a recession period going on in a country there is a chance for stock prices to move up. Suppose the effect of inflation may cause the demand for a product to go up and hence it's stock price in the market goes up.

How to control Recession
There is only one option to control recession that is to circulate money among the people of the country. This is achieved by Tax Exemption, Internal development work which creates more jobs and thus the income for people, Fiscal and many more.

Now the US economy is facing such a recession problem. It is expected that the GDP by the end of the next quarter will be recorded near to -0.65. Now the GDP index is approximated to 0.00, so this will be a worse hit for the Real Estate business. This Real Estate business takes a minimum of three to six months to recover back to find it's normal value. so this is the best time to make some Real Estate property for you.

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