Looking at the Recession of 2020 from a perspective of a 16 year old.

A nickel ain’t worth a dime anymore”

• Yogi Berra

I extend my welcome to each and every person who is reading this blog. I hope you and your family are healthy and safe. As we all know that the Coronavirus pandemic 2020 has forced the governments of different nations to impose a lockdown on their citizens but, have we ever wondered how is it going to affect the world economy?

You all must have heard Economists talk about a recession, the question where most of us ponder upon is:

What is a Recession?

In a situation like a pandemic when a country’s economy falls immediately we call that period of time as a recession.

During this pandemic since all the people are staying safe indoors the growth of the global economy is very meagre or there has not been considerable amount of growth.

This can lead to a downfall in the prices of stocks, rising unemployment and increase in the national debt.

I know these facts give us a very uncertain and are perplexing although I am not trying to create a staer of panic rather I am trying to create awareness where we start retrospecting and find necessary measure for stabilising the current situation.

The People’s Republic of China’s had recently opened up their lockdown and their economy recovered in hardly any time this tells us that the recession that we are facing right now is most probably a V shaped recession. ( V shaped recession is a type of recession where the economy falls down immediately but it does not take very long for the economy to recover itself.)

I hear people talking about the industries which are on the brink of shut down like agriculture, manufacturing etc.

Although, I wonder why is no one talking about the businesses which have emerged as giants during this lockdown, Who knew that there existed an app called ZOOM or Microsoft teams which allowed us to video call or talk to our dear ones. The users of many online sites such as Netflix, House party, Zoom, Microsoft teams are growing tremendously.

Our human behaviour and sentiment also tells us that most of the greatest innovations in history have been implemented in a time of distress because we as humans do not think out of the box when living in luxury.

These are very brief details about the recession that we are facing currently although all we can do is hope that things don’t turn out like the Great Depression or the Recession of 2008.

- Shaurya Walia