English paper recession, Resumos de Linguística

Baixe English paper recession e outras Resumos em PDF para Linguística, somente na Docsity!

SOCIAL SCIENCE DEPARTMENT

ACCOUNTANCY COURSE

TOPIC:

RECESSION

CLASS: CTB1_T

SHIFT: AFTERNOON

LUANDA

GROUP MEMBERS

Dénis da Costa Armando Délcio José Paulo da conceição Lopes Paim Josemer Ivone Ngombo Manuel Gonçalo Alexandre Furtado Correia Lisdália Paixão Paulo Ricardo Dias dos Santos de Oliveira Abílio Matias Gervásio

ABSTRACT

The process of recession is not too complicated and has its reasons and explanations. People get used to spending much money, taking debts, and meeting their demands. The government cannot allow spending such amounts of money because there is a risk of inflation. Therefore, it is necessary to raise prices and make people stop spending their money. The results usually impress because people stop spending their money and take numerous attempts to save incomes and be able to pay debts. In a short period of time (it usually takes from two to five years), the economy of a particular country where the recession takes place is recovered, the government is satisfied with its ability to control people’s financial activities, and people may continue spending money they have until they face another case of recession. It means that any recession has a repetitive nature, and it is hard to guess when it may be expected until some of its signs are discovered. Key-words: Recession, GDP,

INTRODUCTION

The world of finance, as well as the economic world, is complicated indeed. Almost every event has its goal, ground, and explanation. The only factor that is absent is the possibility to develop a personal opinion regarding a personal experience because there are a number of facts, definitions, and outcomes that cannot be neglected. At the same time, people are free to discover some good aspects in many negative concepts and underline the negative points in the required positive changes. There are many discussions about recessions, their backgrounds, impact, various ways of development in different countries, etc. In this paper, the definition of a recession will be given, and the analysis of this concept will be offered to comprehend how people should understand what a recession is all about.

All this can have a very negative impact on a country’s population. Many people lose their jobs and if they can’t afford their mortgages, they lose their homes and house prices drop. They also have less money to spend on shops and restaurants. That means businesses make less money and many go bankrupt. 1.4. THE GLOBAL RECESSION One of the latest recessions that are known globally is the Great Recession that takes place after the financial crisis of 2007-2008 in the United States of America. The essence of this economic decline lies in the impossibility to control housing-related assets. At the end of 2007, the housing bubble burst (Canterbey, 2011), and a number of problems took place. Consumer spending was considerably decreased. Business investments were minor. People continued losing their jobs and could not find new opportunities. The level of uncertainty was dramatic. People did not find it necessary to make serious financial decisions, and companies lost their opportunities to earn money. In a short period of time, many companies became bankrupts because of their inabilities to take debts from banks. In their turn, banks underwent considerable changes, and some organizations had to be closed. When the recession covered the USA, a number of developed and developing countries faced similar economic and financial problems. Such countries like Britain and Germany were challenged by high unemployment rates, and China was able to resist the challenges of recessions and avoid a number of financial problems. The reports also show that Asian countries and Latin America were better prepared for financial challenges in comparison to the world giants like the USA (Canterbery, 2011). As a direct result of the late 2000s recession , some economies in Africa have been primarily affected by reduced global demand and lower prices of commodities such as oil, platinum, nickel, gold, and copper. South Africa was the first African country to fall in recession. Other countries like Morroco and Egypt, which benefited from their previous high economic growth experienced a great decline due to the global economic crisis without falling in recession.

1. 5. ANGOLA Angola is a member of the Organization of the Petroleum Exporting Countries (OPEC) and has fallen to third position in oil production in sub-Saharan Africa after Nigeria with 1.2 million barrels per day. However, Angola has also experienced five years of consecutive economic recession since 2016, during which time it fell from the region’s third- largest economy to eighth in 2020. In 2020, Angola saw its macroeconomic situation deteriorate with the unexpected COVID- 19 pandemic and the plunge in crude oil prices compounding the country’s ongoing economic crisis and giving President Lourenço’s economic reforms a serious blow. This further diminished the country’s ability to reverse consecutive recessions and underscored the need to diversify the economy away from oil and gas.

Angola achieved macroeconomic stabilization amid a very difficult environment in 2020 and growth began to recover in 2021. The recovery picked up pace in 2022, aided by high oil prices. President João Lourenço was reelected in August 2022. Angola continues to face significant challenges, including debt vulnerabilities and the need to diversify the economy as oil production declines over the long term. The authorities’ reform agenda, including their upcoming 2023–27 National Development Plan, is focused on these challenges.

1. 6 RECESSION SHAPES Recovery shapes are used by economists to characterise different types of recessions and their recovery. The shapes take the form of letters, named after how each recovery looks when charted on a graph (showing the overall health of the economy). They make it simple for investors to discuss the complexities of an economic downturn, and how long it may take to recover. All recessions begin the same way, with a significant period of economic decline. But how they end can happen in different ways.

1. V: Blink and you might miss it

This is the lesser of all evils. The V-shaped recovery is the shortest type of recession. In a V-shaped recovery, the economy experiences a sharp decline but then bounces back almost immediately to its pre-recession level. The period in which the economy remains at a low point (the bottom of the V) is extremely brief.

Also known as a double-dip recession: the economy follows the V-shaped recovery, twice. It's essentially two recessions in one, which prolongs the impact of the first, often shattering consumer confidence. Sometimes the nature of world events forces the economy back into a second recession, sometimes it's to do with fiscal and monetary policies (aimed at easing the first decline) sending the economy down again. When has this happened before? The only W-shaped recovery the US has ever experienced occurred during the early 1980s. In January of 1980, the economy dipped and recovered just six months later. Then, after the Fed raised interest rates to counter inflation, the economy fell into a second dip in July of 1981 that lasted 16 months.

4.L: A slow hobble

An L-Sphaped recession occurs when an economy as a severe recession and does not return to line growth for many years if ever. This is most severe of the different shapes of recession and is the worst-case scenario, because it is very difficult to return to the trend growth and requires many years to recover. When has this happened before?. The Greek recession of 2008-2019 could be considered an exemple of an L-shaped recession as Greece technically suffered through four separate but compound periods and never returned to the trend growth so far. The Greek crisis was triggered by the aftermath of the worl-wide Great recession,

structural weaknesses in the Greek economy, and lack of monetary policy flexibility as a member of the Eurozone. The V-shaped and U-shaped recoveries are the most common, although the other shapes are far from unheard of. Hope for the V, but prepare for the L. Stick to your long-term plan. Because of course, when in a recession, it's impossible to know for certain what shape economic recovery will take. However, once key economic indicators respond, we have an idea of how the economy might - which can offer some guidance on financial decisions. We can't see into the future, but understanding the nature of each recession helps us better prepare for the next.

1. 8 REFRENCES

Canterbery, E.R. (2011). The global great recession. Hackensack, NJ: World

Scientific.

Fox, J. (2009). A look back at Bush’s economic missteps. Time. Web.

Kotila, I. (2010). Survive the recession: Spiritual and practical tips to find a better

financial future. Bloomington, IN: iUniverse.

The National Bureau of Economic Research. (2010). Business cycle dating

committee, national bureau of economic research. Web.

https://ao.usembassy.gov/business/economic-data-reports-angola/Web.