Thursday, 29 January 2009

The recession

The recession is generally associated with a decline of the GDP(Gross Domestic Product) or a negative real economic growth. A recession occurs when the economic growth is negative for two or more quarters.
In France there wasn't a recession because in the second quarter, the GDP increased by 0.1%!
But other countries like the USA, Germany or the UK...are in crisis.
In France there is not a recession but the economic situation is bad : the prices have increased whereas the wages have not gone up so household consumption has decreased.
I am pessimistic about the future. In fact, I think that the economic situation is not ready to improve: in France people have lost their jobs and the unemployment rate will continue to increase.
The economic situation is difficult for many countries because of the undergone shocks ? and the financial crisis. Governments must take a risk and create measures in order to safeguard the economy.

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