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Recession and the Global Economy

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The current economic recession crisis is not just limited to the United States. Across the world, the decline of the global economy is one of the worst the world has seen since the US Great Depression of the 1930’s, which affected the economy on an international level.

The United States is the largest economy in the world with a Gross Domestic Product (GDP) of over 17.5 trillion dollars, followed by China with a GDP of over 10 trillion dollars. Although the United States’ numbers sound impressive, the US economy is in a major recession and has not experienced an economic growth even close to significant enough to put the country on the map.

During a recession, the wellbeing of an industry directly affects the health of every other industry. For example, the housing and real estate market collapsed in 2007, and the loss was immediately noticed as home value dropped dramatically, consumer spending ground to a halt, personal credit debt skyrocketed, white-collar layoffs became common, unemployment rates increased, and business investments slowed to a crawl.

The United States’ stock market crash of 2008 was similarly felt all over the world. Almost immediately, a number of European banks failed, which devalued many major European currencies. A number of countries even closed their stock markets temporarily, and the Indonesian market halted trading after experiencing a 10% drop in stock value in just one day. Since this most recent crash and resulting recession, countries all over the world have seen dramatic shifts in business demographics and the struggle of small businesses to stay afloat.

Small and independently owned businesses are especially at risk during a recession because they do not have a safety net to fall back on, the way all the big multi-billion-dollar corporations do. Small business owners can protect their work and assets by getting a business valuation done by a reliable business and property valuator. Understanding the value of one’s business can help an owner make an informed decision about if and when to sell their business when economic times are hard.

One interesting trend that’s accompanied this global downturn is the a rise in the amount of people switching phone carries. Both AT&T are reporting large increases of customers porting their phone numbers from other carriers. Details as to why this trend has occurred as thin at best but some industry analysts are putting it down to the cut throat competition between carriers making cheaper plans available and an increased availability of iPhone unlocks.

Although the global economy is still in a state of crisis, things are getting better. Although growth is slow, each year since 2010 has shown a noticeable increase in job markets and business profitability. It will take the world a lot more time and struggle to climb back up to a profitable international economy, but we are definitely headed in the right direction.

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