Question

Is the World heading for a recession? Explain the conditions under which the world can be classified as being in a recession as COVID-19 persist. Explain linking the pandemic to the various stages of a recession

Answer 1

Ofcourse world is heading for a recession because of the economy getting declined day by day and also the trade and the industrial activities are getting reduced during the covid-19 pandemic which in turn affected the country's GDP.

World can also be classified in recession as the covid-19 persists due to the following conditions:

1) LOSS OF JOBS: We can say that the job loss is the first stage of the recession. Here as the covid-19 is getting persisted many of the companies started laying off the employees as companies are earning a very low profits.

2) FALLING PRODUCTION: Production is also reduced because of the very low availability of the machine and man power upto the required extent. As many of the people fallen sick and also fearing to attend for the jobs due to this pandemic resulted in falling of the production.

3) LOW DEMAND: As incomes of the people getting reduced due to the effect of covid-19 pandemic people are also demanding and consuming less because of the low income.

4) PEAK PRODUCTION: Whole world is heading towards the recession as the countries migh tface with its peak production with low demand , low movement 0f the goods after which the production will start declining due to the low movement of the required inventory and with low work force.