“Recession is when your neighbor loses his job. Depression is when you lose yours”
Ronald Reagan

Regan was the most practical man when he explained recession. Year 2008 marked the most serious recession after the great depression in 1930. But the worst was not yet over. In 2008 it started with Lehman brothers. In 2011 it started with Greece and the US. Now it is evident that we are affected by recession by and large. Here are the repercussions of a recession, so be prepared.

What will happen globally?
1, Recession may lead to depression. Depression is similar to stagnation of business activities. During recession almost all the governments would cut government spending, this will make life lot more painful.
2, Recession means loss of job to an ordinary working man. Financial sector will be the worst hit. Countries may give preference to their natives during recession. They may expel the foreign work force.
3, Recession will lead to economic instability in almost all the nations. The situations in the US and Europe will become worse.
4, Loan will be more costly or you may not get loans.
5, Recession will definitely affect the imports, which indirectly affects the trade deficit of countries. Emerging economies like India will be the most affected by this phenomenon.
6, Job loss in the unorganized sector will be more. Number and percentage of economic crimes will increase all over the globe.

How it will affect India
1, Crude oil prices may cool off, this is a positive development as far as India’s fortunes are considered.
2, many economists believe that a new world economic order will emerge after recession. Then India and China will be the emerging stars.
3, During recession IT companies will have lesser orders-negative development for the IT and ITES industry.
4, Recession, be it of any kind, is negative for the Indian share market. The so called foreign institutional investor giants will sell their stakes and leave the country.
5, Due to the aforesaid factors Indian growth rate will be diminished. Industrial growth will head southwards.
6, Tourist inflow will decrease. Not good for the travel and hospitality industry.
7, During the last recession in 2008, Indian rupee touched 51 against US dollar. Many IT professionals lost their jobs. We can expect a replica of this situation again.

What will happen in Kerala
1, Kerala is home for the largest expatriate population among other states in India. Hence recession anywhere in this globe is negative for kerala economy. Also it will affect the tourism and hospitality industry in the state.
2, It is said that kerala’s real estate sector has been in recession for long. Recession will dampen the prospects of this sector.
3, Sometimes recession is a boon for the small traders. Because when recession comes people prefer small shops than big malls.
4, So many people in the gulf region will lose their jobs. But the state is not equipped to meet these kinds of challenges.