‘How intervention funds will cushion rate of recession, sustain productive momentum’
Business cycle is a feature of the economic growth process. Business cycles refer to fluctuations in output, which define whether an economy is in boom or burst.
Both developed and developing economies have to contend with each phase of the cycle with distinct characteristics.
The boom period is characterised by high gross domestic product (GDP) growth, increased investments and consumption, while negative growth, low savings and investment, with high unemployment are features of a burst cycle.
Recession is a major feature of the bust cycle. Technically speaking, an economy is in a recession when the GDP growth is negative for two consecutive quarters.
During a recession, there is a substantial slowdown in consumer spending with a concomitant decline in business activity.
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