recession

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 …

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What is the difference between a recession and a depression?

The terms recession and depression have been spoken about recently because of the economic effects of COVID-19. But what are the difference between the two and how do they both affect the stock market? A recession occurs when there are two consecutive quarters of declining gross domestic product (GDP). The GDP measures the total value of all goods and services an economy has produced. It is one of the economic indicators used to evaluate the health of an economy. A …

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What are the causes of a recession?

A recession is defined as two consecutive quarters of negative growth of the country’s GDP. Australia has not had a recession for the last 26 years. Having said that, we have had a low growth environment for the past few years. 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. …

Read MoreWhat are the causes of a recession?