Recession
in sentence
2506 examples of Recession in a sentence
Spain’s capacity to withstand an austerity “cure” that only sinks it deeper into
recession
must also have its limits.
The collapse of Bear Stearns and Lehman Brothers exacerbated the US and global
recession.
As the global
recession
ebbs, the most urgent imperative is recovery for all – a recovery that is inclusive, expands employment opportunities, reduces inequalities, and sustains development processes.
One exception is Germany, whose external position strengthened over the last year, with the surplus rising from 6.2% to 7% of GDP – all the more remarkable in the context of a European
recession
and a slowing domestic economy.
In the year after the
recession
ended, discretionary spending at the federal, state, and local levels boosted growth at about the same pace as in previous recoveries.
This war would take place against a background of weak economic conditions globally, and would exacerbate those weaknesses, perhaps throwing the world economy into
recession.
Consider the oil crisis that began in November 1973, resulting in a world stock market crash and a sharp world
recession.
Could such changes in psychology be big enough to tip us into a world
recession?
Even the Ministry of Economics recognizes that Russia has entered a
recession
that will last at least six months.
Although there are serious risks facing the US economy in the coming year, there is also a good chance that growth will be substantially stronger than it has been since before the
recession
began.
I warned that the upturn would be much more tepid than expected: unlike previous business cycles, the
recession
that began at the end of 2007 was not caused by high interest rates, so lowering rates would have little impact.
That is what happened in 2000-2006, when the US Federal Reserve aggressively cut the federal funds rate to 1% during the 2001
recession
and subsequent weak recovery and then kept rates down, thus fueling credit/housing/subprime bubbles.
That decision could come in the midst of another global financial crisis, recession, or asymmetric shock that pushes several fragile countries out of the euro at the same time.
Similarly, while Brazil’s economy remained relatively resilient after the 2009 recession, growth slowed almost to zero last year.
Perhaps the most compelling case of all is that of Indonesia, the world’s largest Muslim state, with a rapidly expanding middle class, relatively stable democratic politics, and an economy that has been a star performer in Asia despite the global
recession.
Since 2008, debt has shifted from private to public sectors, with large fiscal deficits both an inevitable consequence of post-crisis
recession
and essential to maintain adequate demand.
As a result, interest rates cannot return to pre-crisis levels without risking a new
recession.
The fact that many Western economies got out of
recession
last year should not fool us into thinking that the crisis was only a brief interlude, and that the post-crisis world can return to the pre-crisis status quo.
All signs point to a eurozone
recession.
As a consequence, Greece’s
recession
deepened; its already-unsustainable debt swelled further; and the anti-austerity Syriza party rose to power.
In such a system, a
recession
would create a self-reinforcing spiral of deteriorating public finances, rising fears of bank insolvency, and declining credit extension.
To be sure, the current deficit of 9.1% of GDP is due in part to the automatic effects of the
recession.
When the price of oil drops and Texas and Oklahoma fall into recession, money flows their way on a moment's notice and without any political vitriol.
Three fears now seem to be influencing market psychology: China, oil and the fear of a US or global
recession.
Yet, despite these obvious benefits, most investors now seem to believe that falling oil prices point to a collapse in economic activity, which brings us to the third fear haunting financial markets this winter: a
recession
in the global economy or the US.
Every global
recession
since 1970 has been preceded by a big increase in oil prices, while almost every decline greater than 30% has been followed by accelerating growth and higher equity prices.
The widespread view that plunging oil prices augur
recession
is a clear case of the belief that this time is different – a belief that typically takes hold in financial markets at the peaks and troughs of boom-bust cycles.
Finally, what about the falling stock market itself as an indicator of
recession
risks?
In short, nothing about the condition of the world economy suggests that a major slowdown or
recession
is inevitable or even likely.
The Great
Recession
of 2008-2009 also pushed China to the brink of outright
recession.
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