Ways to determine recession
A macro-economic unit can be said to be on the verge of recession, or at least alarming if the following things occur at tandem.
1. 1. Loss of purchasing power confidence in the daily accessories. The consumer spending drops to an alarming level, with purchases being made for only the primary accessories.
2. 2. Increase in the rate of criminal activities related to loot, robbery and theft across the geographical unit.
3. 3. Loss of the stocks in the market by dipping by enormous points in trading pushing towards a sell side of the market.
4. 4.Pulling out of the FDIs in the market towards another country for investment.
5. 5. Local companies fail to deliver on the promised efforts in terms of profit.
6. 6.On a macro level, there is a loss of growth in GNP as the previous consecutive quarters at the same time.
7. 7.Deflation, rather than inflation where the people actually do not feel to circulate money.
8. 8. Lower rate of interest for borrowers as per the governing bank.
9. 9.Lower rate of production of the manufacturing units, with a negative or lower rate of growth.
1 10.Unemployment rate increasing at a higher rate than expected in the near future.
11 11. Least investment in the R&D areas for a concern of them being just a cost unit.
All these, happening at tandem should ring the alarm for the economic recession.