Justification of Global Recession

Running head: FINANCIAL MAMAGEMENT
Financial management
Name of the student:
Name of the university:
Author Note:

FINANCIAL MAMAGEMENT
1
Justification of global recession:
The word recession basically implies the period during which a temporary
circumstance of economic decline is noticed. Such economic decline is generally occurred
due to reduction of industrial or trade and transportation-related activity. This recession
period can be identified through the fall in gross domestic product during two successive
quarters.
According to the definition, which is provided by the International Monetary Fund,
the concept of Global Recession is defined as a decline in per-capita income in annually
world GDP. In the present scenario, the United States is in a position of recession as the
present market conditions signalling red flash (Constantinescu, Aaditya Mattoo and Michele
Ruta 2015). Most of the manufacturing concerns is straining under president's trade war, the
consumers' confidence levels are reflecting cracks, and also the business investments are also
in the same circumstances (Allen et al. 2016). However, many individual economists are
claiming that the growth will weaken slightly within the next couple of years.
A global recession is a period in which the global economy slows down or decline the
economic output that affects many countries around the world. According to the estimation of
the International Monetary Fund (IMF) global recession over a cycle of the period between
eight to ten years. There are three global rescissions over the last three decade year, global
per capita output growth was zero or negative (Delis, Agelos, Nigel Driffield and Yama
Temouri 2017). 2.5 % is recession threshold and 3.5% is the average long term global
growth. The extensive effect of employment or demand for oil is looked upon.