Recession is a very vital factor that determines the running of business. Recession means economic decline. Recession occurs in almost all parts across the globe for every three months. Almost all country has facsed this impact at one time or the other. Recession is caused when there is a decline in GDP (Gross Domestic Product), GNP (Gross National Product), deflation, inflation, hyperinflation, stagflation etc. The economists point put all these factors that cause recession. Recession greatly influence a country’s businesses. In the year 1929, even the great super power US has faced the recession axe. . That was a great depression period and the stock markets of the US was extremely affected by innumerable inflation, deflation etc.

Reasons for recessions

The Demand and Supply factor determines recession. This can happen in two ways. When the supply and consumer’s demand is low or when the consumer’s demand is high and supply is low. Both will lead to inflation and recession. All these occur because of the poor business and marketing policies of a nation. This can be rectified by taking the help of the economic experts and working out on a strategy so that the factors of demand and supply are calculated into a balancing agenda. 

Inflation

The price value’s common rise can lead to recession in the marketing system globally. In this method the essential groceries prices are alarmingly increased. Moreover at a frighthening level the oil prices have increased and into a recession phase the whole world is led into.

The plunge of the Stock markets

Globally the down fall in stock markets is another major cause for recession. This has caused serious impact on a country’s business.  Hence political conditions also influences to a great extent a country’s business and economy.

  Overconsumption
Another major cause for recession is overconsumption. Every one want to live a luxurious life and hence the price of luxurious things increases money is not equally distributed it is concentrated with a particular rich class of people and this has led into a state of poverty. All these factors affect a country’s business.