Do you have any idea about recession? It is a process that can have devastating effect on the structure of the world economy. Now you will see why.

The economy of any country cannot withstand alone, it is dependent on other countries and this process is cyclical. In this way every country forms part of a global economy and global trade. Consequently a blow to the world economy will be followed by its after-effects on each country. This blow has come in the form of the US economic recession.

An economy recession occurs when the GDP (Gross Domestic Product) starts progressing more slowly. It results in a decrease of employment and increase of unemployment, business lulls and fluctuating prices.

The same process is happening nowadays. The US economic recession more or less has affected all countries. The economy of Canada is directly connected with that of the US as most of the country’s GDP is dependent on exports to the US. Reforms in financial markets greatly affected both the Canadian business and economy. The same situation is noticeable in Mexico.

Japan’s economy has also become the victim of the recession as its trade is very dependent on foreign financiers. India’s export and import is connected with the US. The demands decreased and the economy slowed down. The US recession caused inflation in Iceland creating chaos in the banking system. Brazil, unlike some of its neighbors, stabilized its economy and is more or less in safety.

Poor countries are the least affected by the US recession. Countries with weak economies are in some way protected from recession. This comes from the fact that they are not engaged in the global economy. Armenia can serve as an example. Its role and contribution to the global economy is very small. Although such countries do everything to acquire a place in the global market, their instability will not affect them much.

This is an overview about the negative impact of the US recession on the world economy. Hope that at the end of this path there will be a sign of salvation.