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  • Friday ,04 January 2019

Is 2019 a recession year?

Magdy Malak

Article Of The Day


Tuesday ,08 January 2019

Is 2019 a recession year?

Everyone now is talking about the recession that might happen in 2019, refereeing that the downside of the stock market along with the trade war with China will lead to that recession in the near future.

According to Wikipedia, a recession is a business cycle contraction when there is a general slowdown in economic activity. Macroeconomic indicators such as GDP (gross domestic product), investment spending, capacity utilization, household income, business profits, and inflation fall, while bankruptcies and the unemployment rate rise. In the United Kingdom, it is defined as a negative economic growth for two consecutive quarters.
In fact a recession in general is not good at the time of the recession itself, however, a recession means that the economy will boom after that time which is the good news. For example, when there is slow down in a certain good because of inflation of the high price of this good itself, when the market correct itself, the demand on this good will back to normal and might be higher than before.
In conclusion, we need to remember that in 2008 there was a big downside in the market and by a almost 23% and the market correct itself by a almost 24% in the next year. This year might be tough but  it might be an indicator of a good year next.