So... What exactly Recession is?

US Recession is one of the favorite subjects of journalists across the world. Every now and then, in every news channel and newspaper, one can see gurus predicting US recessions with some calculated probability. This article will cover insight of US recession and will address following points:

• What exactly Recession is?
• Why chances of US Recession are increased? AND
• Impact of this on Indian economy.

The official definition of recession is when GDP growth is negative for consecutive two quarters or more. However, one can feel like in a recession before it has officially started because it is usually preceded by several quarters of slowing but positive growth. It feels like a recession when,

• GDP growth slows,
• Businesses stop expanding,
• Employment falls,
• Unemployment rises, and
• Housing prices decline

As per wikipedia:

A recession may involve simultaneous declines in coincident measures of overall economic activity such as employment, investment, and corporate profits. Recessions may be associated with falling prices (deflation), or, alternatively, sharply rising prices (inflation) in a process known as stagflation. A severe or long recession is referred to as an economic depression. A devastating breakdown of an economy (essentially, a severe depression, or a hyperinflation, depending on the circumstances) is called economic collapse. Newspaper columnist Sidney J. Harris distinguished terms this way: "A recession is when your neighbor loses his job; a depression is when you lose your job."

Keep watching this space to know more about US recession and its impact on Indian economy!!