What are the causes of a recession?
A recession is defined as two consecutive quarters of negative growth of the country’s GDP. Recessions affect the stock market as it impacts the ability of individuals to invest in the market. It also affects the ability for companies to generate growth. These are the main causes that can help lead to a recession. Interest rate rises When interest rates are raised, consumers have less money to spend as the result of higher interest repayments. Consumers are also more likely …