FINANCE GURU ADVICE

 What is a Recession? A Recession is a widespread drop in economic activities that affects vario us aspects of an economy. It is often measured by prolonged decline in Gross Domestic Product(GDP) and tremendous increase in unemployment rates.  In United States if there is widespread drop in economy for more than five months, then it is declared as a recession. However in United Kingdom , a recession is defined a negative  economic growth for six months. The National Bureau of Economic Research (NBER) examines various indicators like GDP contraction, increasing unemployment rate, inverted yield curve, industrial production and few more recession indicators. Key Indicators of a Recession  GDP Contraction : One key factor to measure recession is by checking the GDP, which is the total value of goods and services produced in the economy. If GDP declines contracts for 6 months, then it is a clear indication that the economy is in recession. Increasing Unemployment Rate: Another key indica