Before starting any discussion we have to know what the term signifies. The recession defines the state of the economy’s decline. From the middle of 2008, the economic condition of the whole world started becoming very poor. Mainly in the USA, many people are losing their jobs. Almost every sector is affected by the economic crisis. The banking sector, production sector, and real estate are the mainly affected areas. But the huge breakdown in the information technology industry really shocked most people. The maximum number of jobs was lost in this sector. It is not the story of the USA; all countries are suffering from this problem.
There are so many adverse effects of this recession. Firstly, so many employees are becoming jobless, and the price of essential commodities is gradually growing up. The condition is becoming pathetic for the common people. It was expected that things would come under control after the US presidential elections. But, no fruitful result was produced. Many governments have declared different packages to rescue the public & private sectors of their country. The US government has declared that they would give $700 billion to different companies, banks, etc to overcome the dangerous economical condition. Currently, in every sector, development is being shown. The automobile sector is growing up so fast. The amount of sales has increased in rapidly way. But the software industry did not come up to the mark till now.
The effect of recession is very little in Australia. Technically, they have shown that they are not in a recession. But if we analyze all the data, some different results may come out. To avoid recession Australian banks cut down their rates up to 3.25%. Not only Australia, but the Indian government has also taken some different steps to overcome the economic situation. We can’t say that India is out of recession but the effect of recession is very little here. In the last year, the economical growth was 7.8% which was not bad at all. Besides, the interest rates of the banks have been cut down. The government is investing a large amount of money to help the different private companies.
If we take a look at the educational sector, mainly in the engineering sector, the companies are dispatching the joining letter gradually which is really a good sign for the future. Sensex, Dow Jones, and Nasdaq are growing up day by day. It indicates the economical stability & the growth of the economy. We can hope that from the beginning of 2010, the effect of the recession will be very minimum.