RECESSION
- November 12, 2020
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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Subject : Economics
Context : July-Sept GDP to contract 8.6%, estimates RBI. However, RBI said the economy will break out of contraction of the six months gone by and return to positive growth in the October-December quarter of 2020-21.
Concept :
- Recession refers to a phase of the downturn in the economic cycle when there is a fall in the country’s GDP for some quarters.
- It begins after the economy reaches a peak of activity and ends as the economy reaches its trough.
- A common rule of thumb for recessions is two quarters of negative GDP growth.
- A recession is a period of decline in total output, income, employment and trade, usually lasting six months to a year.’