Presentation Recession

8/9/2019 Presentation Recession

1/27

RECESSIONGROUP MEMBERS:

MUNEEB AHMED KHAN (GROUP LEADER) R#07

WALEED AHMED MIRZA R#21

SYED FARAZ UL HAQ R#37

SYED ZAIN UR RAHMAN R#59

SYED ABDULLAH AHMED SHAH R#58

8/9/2019 Presentation Recession

2/27

8/9/2019 Presentation Recession

3/27

WHAT IS RECESSION?

Recession is the economy shrinking for two

consecutive quarters (=6 months) with a

decrease in the GDP (=Gross Domestic Product)

GDP = Value of all the reported goods and services

produced by the people operating in the country

GDP = MONEY VALUE OF {C + I + G + (X M)}

C = Consumables, I = Gross Investments, G = Government

Spending,

X = Exports, M = Imports

8/9/2019 Presentation Recession

4/27

GDP is a good indicator of economy; Other

indicators could be;

-Unemployment Rate

-Consumption Rate

-Actual Personal Income-Etc..

If GDP is growing, then market is growing due to increased

demand;

Note: If the recession continues for next quarter, (>6 months)then we go through DEPRESSION Economy;

8/9/2019 Presentation Recession

5/27

8/9/2019 Presentation Recession

6/27

There is a joke that economists quote to explainthe

Difference between Recession & DepressionRECESSION

= WHEN YOUR NEIGHBOR LOSES HIS JOB

DEPRESSION

= WHEN YOU LOSE YOUR JOB

8/9/2019 Presentation Recession

7/27

WHY RECESSION HAPPENS?

War

Energy Crisis

Currency Crisis

Natural Disasters

Law and Order Situation

8/9/2019 Presentation Recession

8/27

War

8/9/2019 Presentation Recession

9/27

Energy Crisis

8/9/2019 Presentation Recession

10/27

Dollar value

Declined

market

crashed

Currency Crises

8/9/2019 Presentation Recession

11/27

Natural Disasters

Kashmir Earthquake Disaster

8/9/2019 Presentation Recession

12/27

LAW & ORDER SITUATION

.Bad Incidences Happening;

Example: September 11 Terrorist Attack in US;

International Airport block in Thailand; MumbaiAttacked in India; Series of such incidences leading into

a kind of War

8/9/2019 Presentation Recession

13/27

RECESSION INDICATORS

People buying less stuff

Decrease in factory production

Growing unemployment

Slump in personal income

An unhealthy stock market

8/9/2019 Presentation Recession

14/27

EffectsofRecession

Bankruptcies

Credit Crunches

Unemployment

8/9/2019 Presentation Recession

15/27

Bankruptcies

8/9/2019 Presentation Recession

16/27

During the weekend of September 14-15 2008, Lehman Brothers declared bankruptcy after

failing to find buyers.

Bankruptcies

8/9/2019 Presentation Recession

17/27

Because of layoff Unemploymentstarted to rise which resulted in further

reduction in spending by consumer.

8/9/2019 Presentation Recession

18/27

Pakistan Economic Situation

Increasing Rate ofInflation

0

5

10

15

20

25

200 2008

In f la t ion Ra te

8/9/2019 Presentation Recession

19/27

Foreign ExchangeReserves

34

7

c 7 c

Fo r e ig n E x c h a n g eR e s er ve s in Mi io n$

8/9/2019 Presentation Recession

20/27

Increasing Poverty

6

6

Poverty Line

8/9/2019 Presentation Recession

21/27

Suggestions To Prevent

RecessionSteps needed to be taken by the Government

1) Lower Taxes

2) Reduce Regulations

3) Business Loans at Low Interest Rate

4) Implementation of Laws those are unfavorable to the

Creditors

5) Encourage Exports

6) Reduce Government Expenditure

8/9/2019 Presentation Recession

22/27

Steps needed to be taken by General Public1) Work More

2) Pay Debts First

3) Concentrate on Savings

4) Settle in any Job if you lose the Current One

5) Pay Taxes Promptly

8/9/2019 Presentation Recession

23/27

8/9/2019 Presentation Recession

24/27

8/9/2019 Presentation Recession

25/27

Thanks

Queries are Welcome

8/9/2019 Presentation Recession

26/27

FurtherQueries

Mail Us At:

[email protected]

8/9/2019 Presentation Recession

27/27

The ost Important Part