A global economic recession refers to a period of widespread economic decline that affects multiple countries and regions around the world. During a recession, key economic indicators such as gross domestic product (GDP), employment rates, consumer spending, and business investment experience significant contraction, leading to a slowdown in economic activity and a decline in overall prosperity.
Causes of Global Economic Recession
Several factors can contribute to the onset of a global economic recession, including:
1. Financial Crises:
Financial crises, such as banking failures, stock market crashes, and credit crunches, can trigger widespread panic and uncertainty in the financial markets, leading to a loss of investor confidence and a sharp decline in economic activity.
2. External Shocks:
External shocks, such as natural disasters, geopolitical conflicts, and pandemics, can disrupt global supply chains, disrupt trade flows, and destabilize financial markets, causing economic downturns across multiple countries and regions.
3. Economic Imbalances:
Imbalances …