In economics, the term recession is generally used to describe a situation in which a country’s GDP, or gross domestic product, sustains a negative growth factor for at least 2 consecutive quarters. I say generally because recession can be defined differently by different economists. Just as there is an agency to define the measure of inflation; the official agency in charge of declaring that the economy is in a state of recession is the National Bureau of Economic Research (NBER). NBER’s definition of recession is a bit more vague than the standard one that was described above; they define recession as a “significant decline in economic activity lasting more than a few months”. For this reason, the official designation of recession may not come until after we are in a recession for six months or even longer.

Some economists also suggest that a recession occurs when the natural growth rate in GDP is less than the average of 2%.

Typically, a normal economic recession lasts for approximately 1 year.
But this time all the agencies saying this will be even bad for India.

From all indication, the recession of 2008 is already here. Not only that, it looks to be one of the worst ones in our history, due to the far reaching impact of the “easy credit” lenders over recent years. But simply dealing with the housing market and mortgage industry is like examining the symptom, no the root cause.

So what are the causes of economic recession? The root cause ultimately lies with the boom and bust cycle- a product of a regulated economy in which the federal reserve can create fiat money at will.

Some suggestion what to do for the guys who can lose their JOBS during this period :

* The first is build a 3-6 month hedge of savings against the possibility of job loss. During recessions, companies start laying off do to slowing productivity. A safe cushion of savings will soften the blow of job loss and give you time to look for another job.
* Work on enhancing your job skills. ( in the even you have to change jobs.)
* Learn how to market yourself effectively. People don’t care if you need a job, they want to know what you can do for them.
* Get out of debt as quickly as possible.