The entire world is facing the repercussion of the effects of the financial disaster, which commenced in the United States of America. All of us are facing an economic recession of gigantic proportions. Negative economic growth leads to recession and a continuous recession leads to depression. The first and direct impact of this recession is an economic slowdown thus escalating the prices of oil and food products.
The first target of any recession is spiraling prices and unemployment. Prediction by financial pundits of an impending decline in economic growth has come true. The current meltdown has ended a long stretch of uninterrupted economic growth. There is no doubt that all banks have improved their liquidity but they are charging a higher rate of interest with a result that obtaining credit has become a very costly affair.
The result of the economic recession is being felt in all areas of growth – industry, service and business. The aftermath of the recession has been felt in all these areas of employment. Even multinational conglomerates have started layoffs, cost-cutting measures, and taking steps to encourage dwindling sales to boost the growth of a sagging economy.
