Almost every facet of our lives as consumers is affected by a recession. Basic essentials like food and housing become more difficult to obtain as prices sky-rocket behind recession. The answer lies in a fundamental of economics which goes through several months and years of economic growth, the slowdown is inevitable. The growth period normally lasts for 6 to 10 years where as recession is a period of 6 months to 2 years. The current world economy has definitely entered into recession. The most powerful economy USA is going through recession and that has affected other economies as well. India is witnessing a slow down and a lower GDP growth projection but as a country, it is yet to enter into recession. The bag economies that enjoyed uninterrupted growth and development for decades are facing lack of demand from consumer side.
The average spending by consumers has decreased drastically. With less demand, there is bound to be less production and rising unemployment. Many industrial and corporate houses are churning their workforce. Stocks market are major indicators of economy trend. A rising economy is always well reflected on the bourses. Share prices of many renowned companies have touched the rock bottom in the current economic turmoil. The Indian stock exchange has also lost more than half of its value in a period of 8 to 9 months. Most of the world economies including India are declaring bail-out packages for doomed industries. Several high flying companies have come back to earth, battered and bruised. Big shots in financial world have gone bankrupt or been acquired by other companies .