University „Goce Delcev“ -Stip
Faculty of Tourism and Business Logistics
„RECESSION IN MACEDONIA“
Prof. Vesna Prodanovska Tomislav Nakovski
Recession in general
In economics, a recession is a business cycle contraction, a general slowdown in economic activity over a period of time. During recessions, many macroeconomic indicators vary in a similar way. Production as measured by Gross Domestic Product (GDP), employment, investment spending, capacity utilization, household incomes, business profits and inflation all fall during recessions; while bankruptcies and the unemployment rate rise.
Recessions are generally believed to be caused by a widespread drop in spending. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply, increasing government spending and decreasing taxation.
Recession in Republic of Macedonia
Yes,the recession is knocking hard on our door,we “hear” it and we feel it day by day more.It is not yet open but it’s more than certain that it will be,and without using a larger effort.Should we be afraid of it?
Those who know the essence of recession respond negatively, recalling that depression is much worse and more dangerous. Actually, in its definition, there are issues and dilemmas. It doesn’t exist most precise definition, and even requires redefinition.
In general, recession is defined as a decline in GDP two quarters in succession. However, it can be easily brought into question if one considers some problems identified precisely in this economic crisis: GDP can fluctuate quarterly, for example in the first and third quarter, 4%, while in the second and the fourth 1%, which by definition would not be defined as a recession even if it would come to its relatively long-term decline, or the direct and...