IT may seem that we are overdue for a recession, given the historical trend showing a recession for the past two decades. As the phrase goes, “All good things must come to an end”. But are we heading for a recession in the near term?
Recession refers to a business cycle contraction which results in a general slowdown of a nation’s economic activity, measured by the Gross Domestic Product (GDP). It occurs when there is a prevalent fall in spending – an adverse demand shock – more likely triggered by several events such as a financial crisis, bursting of the economic bubble, or an external trade shock.