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Recession in sentence

2506 examples of Recession in a sentence

In the United States, there is growing concern that the worst recession since the Great Depression has damaged the economy’s capacity to grow.
As I pointed out, with the United States and global economy sliding into a severe recession, bank losses would extend well beyond sub-prime mortgages to include sub-prime, near-prime, and prime mortgages; commercial real estate; credit cards, auto loans, and student loans; industrial and commercial loans; corporate bonds; sovereign bonds and state and local government bonds; and losses on all of the assets that securitized such loans.
The US, the United Kingdom, and other economies risk a similar outcome – multi-year recession and price deflation – if they fail to act appropriately.
Raising interest rates to the sky won't be credible because it would cause a recession and the ECB could not hold to such a policy for long.
The deficit was relatively mild until 1999, when the economy went into recession.
The recession was mainly caused not by budgetary spending, but rather by Brazil's sharp devaluation of its currency in February 1999, a step which made Argentina's own Peso uncompetitive and led investors (rightly, it turned out) to expect a similar devaluation in Argentina.
This deepened the recession in 2000 and 2001 and led to a rising budget deficit because of declining tax revenues.
And, inevitably, the recession on the eurozone’s periphery is deepening and moving to the core, namely France and Germany.
Indeed, the recession will worsen throughout this year, for many reasons.
Moreover, as the recession deepens, resulting in even wider fiscal deficits, another round of austerity will be needed.
Elections in Greece – where the recession is turning into a depression – may give 40-50% of the popular vote to parties that favor immediate default and exit from the eurozone.
And, without that, all it has is a recession strategy that makes austerity and reform self-defeating, because, if output continues to contract, deficit and debt ratios will continue to rise to unsustainable levels.
The flow imbalances include a deepening recession, massive loss of external competitiveness, and the large external deficits that markets are now unwilling to finance.
Without a much easier monetary policy and a less front-loaded mode of fiscal austerity, the euro will not weaken, external competitiveness will not be restored, and the recession will deepen.
The so-called temporary effects in terms of displaced native workers and lower wages may last five or ten years, while the beneficial effects assume an absence of recession.
And, even with no recession, if there is a continuing inflow of migrants, rather than a one-off increase in the size of the labor force, demand for labor may constantly lag behind growth in supply.
Thus, even with optimal outcomes, like the avoidance of recession, the economic arguments for large-scale immigration are hardly conclusive.
Although the trust gap has narrowed somewhat in recent years, even the continuing recession, which is often blamed on EU-imposed austerity and the crisis in the eurozone, has only marginally reduced the European Parliament’s advantage over national parliaments.
That is an unimaginably large burden, and it risks condemning Greece to permanent recession and social unrest.
If so, could a worldwide recession follow?
The United States Congressional Budget Office (CBO) estimates that American output will be roughly 7% below its potential in the next two years, making this the worst recession since World War II.
American household saving has shot up from 0% to 5% since the start of the recession, understandably to pay off debt.
A double round of stimulus packages is needed to counteract the real prospect of a double-dip recession.
If a preliminary agreement on these questions is not reached by the end of the year, the economy faces a “fiscal cliff” of $600 billion in automatic tax increases and spending cuts that will shave about 4% from GDP and trigger a recession.
Such an agreement could help to break the political impasse over whether and how much these taxpayers’ rates should rise next year, thereby preventing the US from falling over the fiscal cliff and back into recession.
Moreover, many employers, seeking to share the pain of recession and slow down layoffs, are now asking workers to accept cuts in both hours and hourly wages.
Thus, the total effect of the recession on labor income of jobs, hours and wage reductions is much larger.
With consumption accounting for 70% of US GDP in the US, and a similarly high percent in other advanced economies, this implies that the recession will last longer, and that economic recovery next year will be anemic (less than 1% growth in the US and even lower growth rates in Europe and Japan).
Second, job losses will lead to a more protracted and severe housing recession, as joblessness and falling income are key factors in determining delinquencies on mortgages and foreclosure.
So, while further fiscal stimulus seems necessary to avoid a more protracted recession, governments around the world can ill afford it: they are damned if they do and damned if they don’t.
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