Recession refers to a period of general economic decline and is typically accompanied by a drop in the stock market, an increase in unemployment, and a decline in the housing market. Generally, a recession is less severe than a depression.
you will agree with me that knowing what recessiuon is does not solve the problem,one needs to understand the cause of the problem to be able to solve it.
what are the causes of economic recession
High interest rates are a cause of recession because they limit liquidity, or the amount of money available to invest.
Another factor is increased inflation. Inflation refers to a general rise in the prices of goods and services over a period of time. As inflation increases, the percentage of goods and services that can be purchased with the same amount of money decreases.
Reduced consumer confidence is another factor that can cause a recession. If consumers believe the economy is bad, they are less likely to spend money. Consumer confidence is psychological but can have a real impact on any economy.
Reduced real wages, another factor, refers to wages that have been adjusted for inflation. Falling real wages means that a worker’s paycheck is not keeping up with inflation. The worker might be making the same amount of money, but his purchasing power has been reduced.
it bites hard on everyone both the rich and the middle class.it is imperative for the government to take steps in addressing these issues by introducing reforms to tackle these prevailing problems
– spending on viable projects
-diversification
-reduce cost of governance
in addition to the above,the government can go a long way by :
ensuring local production of goods.in the country by discouraging imports of goods
.also decrease the value of the currency
.making agriculture attractive to the youths.
reducing dependence of oil.to make industries efficient and
productive.diversification is the key to tackling economic recession in the country.therefore all hands must be on deck for citizens to partner with the government to address these issues as this will go a along way in solving these problems.