What is a recession

Recession is a a period of temporary economic decline during which trade and industrial activity is reduced. The UK is leading towards the worst recession. Companies in UK made loads of things like cars, electronics, clothes, food etc.

The more we sell, the more money the country makes. When that happens the economy grows. UK GDP fell by 20.4 percent between April and June.
Overall, the global economy was expected to shrink by three percent in 2020, which makes it significantly worse than the 2008 financial crash and the worst in the world since the Great Depression.
In a recession, you may feel these compounding effects a few different ways: jobless claims go up, spending habits change, sales slow down, and economic opportunities dwindle. Generally speaking, higher retail sales are a sign of economic improvement. When consumers are confident in their economics, they will keep buying things even when unnecessary. Retail sales, however, are hardly an exact reflection of people’s spending.

A recession is usually defined as when this happens for 2-3-month periods in a row. This has now happened in the UK for the first time since 2009. If a recession carries on for a long time, or is particularly bad, it is known as a depression. A growing economy also means the government receives more money in taxes. So it can cut taxes, or spend more on benefits, public services and government workers' wages. When the economy shrinks, all these things go into reverse.

How long does a recession last?

On average, a recession lasts about 11 months, according to the National Bureau of Economic Research. But they can be shorter and milder, or longer and more severe, as we know from the Great Recession of 2008.

How to Survive a Recession?
Create an emergency fund. If you don't already have you an adequate emergency fund set aside, specify a goal for how much money you want to add to it every month.

In a recession, there's always the chance that you might lose your job. Your primary focuses should be to keep your current job and be ready to enter the market again for a new one if you lose it.

Experts typically recommend spending no more than 30 percent of your net income on discretionary items. It’s a good idea to create a monthly budget to ensure that you’re living within your means and not overspending.

Too often, small businesses make the mistake of stopping their marketing activities, thinking it will save them money. As marketing is the main avenue to getting your company’s name out there, it would be unwise to cease your activities – however, there are ways to market on a budget.

Spend more time with your customers to find their needs. Try to sell more to your existing customer than finding new ones.

It’s a good idea to keep an eye on your competitors and compete them in both service and quality.