Recession is considered being a period of general economic decline, which is identified as a contraction with GDP for approximately, six months or more than that. It is marked by stagnant wages, high employment, and a fall in retail sales. Therefore, the duration of the recession lasts for at least a year which is considered being mild like depression. Therefore, according to the experts, there are few countries, which are definitely going under recession, and if you wish to know more, allow this document to be your guide.
List of countries on the verge of recession
Given below are some of the countries, which are hand-picked by the experts and are put under the recession category. They are:
- Germany: The economy of Germany shrinks to 0.1% in the second quarter, after the 0.4% anemic growth in the first half of the year. When there are two continuous quarters of negative growth, it will definitely give birth to the recession. Therefore, Germany is standing near the tip of the iceberg, making it clear for a big recession by the end of the year. Germany is a country that is well known, across the globe for manufacturing cars and other types of industrial goods, through which it provides power, to its economy. Half of the countries around the globe which includes the US is also facing a manufacturing recession, and the German government is all determined to make good spending, in order to stimulate growth.
- Italy: Italy happens to be Europe’s third-largest economy and has been struggling for several years after it entered the recession in 2018. However, 2019 have not been that fruitful as well, the growth in the second quarter was 0.2%, and there are speculations that it might be in bad shape, as Italy sells its products to Germany, which is currently living on the edge. The repetitive political crises in Italy is making the country struggle, since the additional economic aid, is made through the government. The Italian prime minister, is currently going through a no-confidence vote, at the Senate and by this year he might, have to resign, this is because Italy is currently in debt, which is recorded to be the highest across the globe.
- United Kingdom: When you compare the UK’s storyline with Germany, you will find the country to be in a similar situation. This is because, the growth in the second quarter has been contracted 0.2%, after a 0.5% in the first quarter. The United Kingdom has been in the top when comes to investment slump, this is because of the uncertainty of Brexit. Therefore, chances are with the United Kingdom leaves its position, from the European Union then there are higher chances that the country will definitely go under the recession.
- Brazil: This is a shocker as the largest economy of South America, happen to shrink to 0.2% in the first quarter, and the second quarter also provided a negative growth, after the data was released on August, which hence marked the starting of recession. The country of Brazil performed poorly when it came to selling goods overseas, and it also faced a sluggish demand, in the home soil.
Many individuals assumed that the country would benefit if China purchased soya bean and other products, rather than the United States, but the situation was way worse than that. This is because slumping commodity have been hurt, and the central banks are cutting interests, and the government of the Brazilian president is handing out cash payments, in order to stimulate the growth.
- Mexico: The United States neighbor from the southern region has become a big bulls’ eye for Donald Trump’s immigration and trade wars, which has turned the tables for the worst. The economy of Mexico contracted a growth of 0.2% in the first half and enabled the country to make a narrow escape from a recession at 0.1%, in the second quarter. That is not all, the Mexican soil has also faced with rejections in the field of business confidence and investments, and all the companies biggest fear is that the Mexican president might nationalize the industries.
- Argentina: To keep it short, the country of Argentina is in deep crises. This is because, the country is already under the shadows of recession, and it is getting much worse day by day. Therefore, in recent news, it has shown that Argentina’s stock market faced a drop in the market of 50%, and this is recorded to the second-largest crash, which any country has experienced since 1950. The country is currently going through inflation, and with the high price on the side, the Argentinian president faced a defeat in the nations, primary election. The investors are worried that the country of Argentina, will not be able to repay its debt, and the middle-class residents of the country will fear that they won’t be able to afford their everyday products and service.
Recession is not a good thing, and when a country falls under it, the situation is worse than expected. The above-mentioned country is a few of them and happens to fall under the recession period. If the failures from their side continue, then the country might have a difficult future.