Impact of Global Recession
A recession is a significant decline in activity across the economy, lasting longer than a few months. It is generally considered less severe than a depression, and if a recession continues long enough it is often then classified as a depression. There is no obvious cause of a recession, although overall blame generally falls on the federal leadership. It is visible in industrial production, employment, real income and wholesale-retail trade. The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country's gross domestic product (GDP). “The Bahamas is one of the wealthiest Caribbean countries with an economy heavily dependent on tourism and offshore banking. Tourism together with tourism-driven construction and manufacturing accounts for approximately 60% of GDP and directly or indirectly employs half of the archipelago's labor force”(index mundi). In the year 2008 The Bahamas was in a global recession. This recession was one of the worst The Bahamas was faced with. There were many Bahamians that were left unemployed due to the depression. Most of these people are now recently finding new jobs or back at where they were at beginning. Coming from the Preliminary Overview of the Economies of Latin America and the Caribbean • 2009 it was said that, “the recession in the Bahamian economy deepened in 2009 with growth estimated to contract by 3.9%, as the recession in its major market, the United States, led to a sharp fall in tourism and foreign direct investment and to less dynamic offshore financial services. The government implemented a series of fiscal stimulus measures to counter the downturn in demand and bolster economic activity. With reduced private-sector demand, monetary developments were marked by a slowdown in credit and a build-up in liquidity. The
current account deficit decreased reflecting the weakness in import demand and lower fuel prices. Services...
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