World’s Greatest Countries Face Economic Recession

World's Greatest Countries Face Economic Recession
World’s Greatest Countries Face Economic Recession

Overview On Recession

Recession refers to a drop in economic performance. This is the period whereby a particular country’s economy temporarily declines, and its trading activities are disappointing. There is also a significant fall in the Gross Domestic Product between two fruitful quarters.

Economy In Japan

Japan experiences a free market economy. This is an economic system whereby its prices get determined through unrestricted competition between privately owned businesses.

It is located on the Asian continent, Tokyo being its capital city. As a country, it is the 2nd most developed in terms of economic approach and 3rd largest in terms of its nominal Gross Domestic Product (GDP).

In Japan, various trade activities take place. It’s 4th largest importer and exporter in the World. The economy was doing well until 2019 when it experienced some challenges. Due to the catastrophic typhoon and the sales tax rising, Japan’s economy experienced a decline of 1.6%.

Surprisingly Germany’s Economy Is At The Verge Of Recessing 

Germany experiences a social market economy. This economy is somehow based on a free market that is in collaboration with the state provision that takes care of the elderly and the unemployed people. It’s the 4th largest in terms of the nominal GDP.

GDP measures the value of economic activity in a given country. As of 2017, it was at 3.677 trillion. The country is a professional when it comes to car manufacturing. Tesla is one of the products of cars manufactured in Germany. Recently, reports say Tesla is bringing Germany’s economy into a recession.

China’s Economy Slows Down Following Its Trade War With The United States

Since elections took place in the US, and Trump won, Americans are not entirely happy with his rule. In 2016 Donald Trump issued tariffs and trade barriers to China forcing it to make changes in what he termed as ‘unfair trade practices’

Trade War Effects And Critics

After the unstable trade relations occurred between the two countries, a lot of traders got affected. The Farmers complained about their agricultural production sector together with the manufacturers in the country. The effect was further affecting the consumer prices and the stock markets. Businessmen and agricultural organizations greatly criticized Trump’s action for creating such chaos in the trade sector.

Coronavirus: The World’s Menace And Economies Of Other Countries Are Greatly Affected 

Since the deadly disease COVID19 came to be, a lot of issues have come about. China being the source of the virus, it goes through economic hardships and challenges as they look for a way to curb the disease.

In China, many businesses and companies are off-market. Countries that interact with China in matters concerning trading activities are in economic crisis since they invest in the country too.

Today in the stock market, Dow Jones experiences a 2.8% drop following weaknesses in Microsoft, Apple, Nike, and United Health. People in social media are commenting on the poor performance of today’s stocks in the market.

Donald Trump In India

Following the success in India’s economy by becoming 5th World’s largest and surpassing France and UK, we see President Donald Trump heading to India to talk to Modi, Indian’s PM. US and India had trade conflicts then, but there is much hope that the President’s visit to India is a new chapter to their relationship.