At first I would like to explain what is a recession.
In economics, the term recession generally describes
the reduction of a country's gross domestic product
(GDP) for at least two quarters. In the other word
recession is two consecutive quarters of a negative growth.
Usually in period of recession everybody faces
a lot of problems but there are some sectors which may
gain from the recession.
As we know in the period of recession government is trying
to reduce interest rates to encourage people to spend more
money. So if interest rates are low people who has already
borrowed money (bank loans) may gain from the recession
because they pay less interest rates.
Also businesses that sell inferior goods such as public transports
(buses, taxis), low quality food (deliver pizzas etc.) might gain
as well in the period of economic downturn. If people have less
income demand for inferior good will rise. So this type of business
might gain from the recession.
Current ratio
7 years ago
2 comments:
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