Lately we have heard a lot of one word, namely recession.
According to economists, a recession indicates the state of a country's economy
is in decline. So what exactly is meant by this recession, what causes it,
which countries have experienced it, and how to overcome it?
A recession is a significant decline in economic activity
over a prolonged period of time, ranging from months to years. In other words,
the meaning of a recession is a massive contraction in terms of economic
activity. This decline is seen in real GDP, real income, employment, industrial
production, and wholesale-retail sales.
This recession first started during the COVID-19 pandemic
yesterday, at which time there were many lockdowns in various countries to
reduce the spread of the virus. This lockdown causes the economic cycle to not
run normally because it requires everyone to stay at home.
This very slow economic cycle will cause many problems such
as excessive inflation, excessive deflation, asset bubbles, sudden economic
shocks, imbalanced production and consumption, economic growth slumped for two
consecutive quarters, Import value is greater than exports, the level of high
unemployment, etc.
Many countries today have begun to fall. The worst was
Lebanon, which had already experienced inflation of 211.43%, followed by Sudan
and Zimbabwe at 192%, and Venezuela at 167%. Other developed countries such as
America, Japan, and China did not escape from experiencing high inflation.
America recorded inflation of 9.1%.
There are several things that are recommended by world
economists to deal with this recession, including:
1. Maintain and maintain people's purchasing power. This can
be done by the government of a country by providing social assistance and other
supporting programs such as discounts
2. Maintaining and strengthening the resilience of the
business world, one of which is by reducing taxes so that not many companies
close because they are still making a profit
3. Prepare early, especially in the future, there will be
another pandemic similar to the corona so that the economic impact that occurs
can be resolved immediately
4. Continue to increase exports and investment
5. Create a lot of jobs by creating a lot of new business
activities
6. Need to keep improving infrastructure
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