what is an economic recession?
It is believed that a recession is a period of time in which the percentage of growth of the GDP of an economy is negative. Nevertheless, already it is considered to be an economic recession when the economic activity contracts or decreases during two or more consecutive trimesters. Basically, everything begins with a decrease of the growth of the economy. The proper economic situation, and the fear of a harder future provokes that the consumption diminishes, and that with this reduction of the demand, the products that have the companies stay in inventories, increasing. The industrial sector begins to collapse this way, and to reduce the losses or the benefits decrease, the dismissal increases, raising the unemployment. In turn, the dismissals provoke that the fear increases and that wears out even less. The credits, at the same time, remain without paying and the slowness increases, at the same time that they diminish the credits, being able to come this way also to a financial colla
