US went into recession followed by Britain and European nations even the Asian countries were not speared by this global recession. Hong Kong also slipped into recession in the 3rd quarter as on 15th NOV 2008, as global economic slowdown took its toll on the financial hub, Hong Kong’s gross domestic product fell 0.5% from the previous quarter on a seasonal adjustment basis, following a fall of 1.4% in second quarter.
European nations which became Euro Zone from the year 1999 and introduced Euro € as its currency, also faced the recessions. The 15 European countries faced this situation first time in ten years since being in euro zone. They recorded -0.2% growth rate in the second quarter of the year. If the growth rate in Europe goes to negative, constantly for two quarter it is officially pronounced recession in Europe.
Generally recession is identified as- continues fall in GDP for two consecutive quarters of the country is termed as recession in that country.
But whereas in India, there is no question of recession but will definantely slowing down for a bit. With inflation down to 8.40 per cent, the Reserve Bank is expected to cut policy rates, repo and reverse repo, along with a fiscal stimulus package by the Government, to spur economic growth. The Indian economy grew by 7.6 % in the first half of the fiscal from 9.3% a year ago, and analysts predict further slowdown in the remaining period of this fiscal. Data released by the Central Statistical Organisation on 28 th of Nov 2008 showed that all the eight economic sectors that contribute to the gross domes-tic product (GDP) recorded a lower growth year-on-year. The slow-down in the services sector — which accounts for nearly 60% of the output — was milder than expected, The economy expanded by 7.9% during the first quarter, taking the first-half GDP growth to 7.8 %. Economists had been expecting second quarter GDP to grow 6.9%,
Growth in manufacturing during the second quarter almost halved year-on-year to 5%, and was down 60 basis points compared with the preceding quarter. Growth in agriculture slipped to a two-year low of 2.7%, raising concerns about its potential impact on food inflation, which continues to rise despite falling headline inflation.
