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Recession in sentence

2506 examples of Recession in a sentence

The Global Trade System Could Break DownWASHINGTON, DC – Ten years after the failure of Lehman Brothers, we know that multilateral action was crucial in preventing the so-called Great Recession from becoming even worse than it was.
Given this, the recent sharp decline in world oil prices obviously represents a major shock – large enough, when combined with the effect of increasingly strict Western sanctions – to provoke a sizeable recession.
Never mind that the central bank is not responsible for Russia’s troubles – the run on the ruble, the recession, and the flare-up of inflation – and that using interest rates to prevent capital outflows always fails.
But the monetary union’s fundamental problems – low potential growth, ongoing recession, loss of competitiveness, and large stocks of private and public debt – have not been resolved.
Its bid to join the European Union is currently stalled, while the eurozone recession dampens its growth.
The point, as it was reported, is that a second UK recession following the global financial crisis in 2008 (a “double dip”) had now been erased from the history books, and that the Conservative government would take some satisfaction from this fact.
The right question is not whether there have been double (or triple) dips; the question is whether there has been one big recession all along.
Recent reports that Ireland entered a new recession in early 2013 would also read differently if American criteria were applied.
Following US methods, Ireland would not be judged to have escaped the initial recession.
Similarly, it was recently reported that Finland had entered its third recession since the global financial crisis.
Italy, judged according to US standards, has been mired in a five-year recession: the recovery in 2010 was so tepid that by 2011, before a new downturn set in, the economy had barely recovered one-third of the output lost after the recession began.
Economists generally define a recession as a period of declining economic activity.
European countries, like most, use a simple rule of thumb: a recession is declared following two consecutive quarters of falling GDP.
For example, it generally would say that a recession had occurred if GDP had fallen very sharply in two quarters, even if they were separated by one quarter of weak growth.
Similarly, if a trough were subsequently followed by several quarters of positive growth, the Committee would not necessarily announce that the recession had ended; it would wait until the economy had recovered sufficiently that a hypothetical future downturn would count as a new recession, not a continuation of the first one.
At the time, the NBER Committee declared that there had been a recession in 2001 (based on employment and various other indicators), even though the initial GDP data did not show two consecutive quarters of declining output, let alone three.
The Committee has never yet found it necessary to revise the date of an economic turning point, let alone erase a recession.
It declared that a second recession started in the latter part of 2011 – and continues to this day.
In May, France, too, revised away an earlier recession, which would otherwise have been counted as the second since 2008.
But if these countries have been in the same recession for five years, the implication may be that the leaders have been doing the same wrong things throughout that period.
This would be a painful recession, but far short of the 10-15% output drop normally associated with a full-blown depression.
Nevertheless, the distinct possibility that stimulus and restructuring may work is further cause to hope that the deepening recession will not morph into a full-blown depression.
But these regions are nevertheless mired in recession.
The Fed would then have to hike rates rapidly to catch up at the risk of triggering a recession.
Then the inevitable recession and stock-market collapse plunges the state into crisis.
What makes the current situation unusual and more worrying than in the past is the low level of short-term interest rates, which limits the ability of the US Federal Reserve to bring monetary policy to bear in countering the next recession.
First, recession has hit certain high oil consumption sectors such as air transport hard and so demand for oil has gone down.
From a Keynesian perspective, the outcome of a trade war depends mainly on whether the combatants are experiencing recession or excess demand.
In a recession, tariffs can boost economic activity and employment, albeit at the cost of long-term efficiency.
They have recognized that austerity will mean slower growth – indeed, a recession is increasingly likely – and that, without growth, the eurozone’s distressed countries will not be able to manage their debts.
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