Recession


An economic recession is a critical situation in which a country suffers a drop in the production of the Gross Domestic Product, therefore this decrease leads to nervousness on the part of investors, therefore the recession increases and the country enters an economic crisis. . Simply put, the recession could start and be fueled by investors constantly pumping capital into the companies they produce. As there are no resources, there is no product, there is no sale, the scarcity arrives to finally fall into economic depression.

However, recessions are avoidable, since there are certain indicators with which a possible recession in the country can be predicted, the most important of all is the increase in the unemployment rate, which in turn produces a decrease in consumption and so on. Having massive cuts in personnel indicates that companies do not have the strength to produce and raise production, capital injections are nervous to the point that they cease.

Other “symptoms” of a recession that are worth noting are: increase in the overdue loan portfolio, greater restrictions on the part of banks to award credit, decrease in consumption capacity; increase in the overdue portfolio of credits, due to the inability of debtors to pay, the increase in interest rates.

In 2010, the United States suffered a great recession whose main cause was the war against Iraq and the countries of the Middle East. This warlike conflict led the banks to bankruptcy, Wall Street collapsed as well as many economies that depend on the United States as well.