The coronavirus pandemic has crippled the world economy with several countries slipping into recession. According to a Worldometer, there are currently 7,461,839 COVID-19 cases and 419,090 people have died so far. Even though the numbers are galloping, but a majority of the nations have already started lifting lockdown restrictions in view of the economy which has now come to a grinding halt.

Organisation for Economic Cooperation and Development (OECD) forecasted that the global economy would contract 6.0 per cent this year before bouncing back with 5.2 per cent growth in 2021, provided the outbreak is kept under control. The forum fears that in case of a second wave of the pandemic this year, then the global economy would contract 7.6 per cent before growing only 2.8 per cent next year. What is Furlough? Here's The Meaning of Action Being Taken by Companies in US Amid Economic Slowdown Due to Coronavirus.

What is a Recession?

Recession is a time when the economic condition of a country is not successful and conditions for businesses are bad. In economics, recession refers to a business cycle contraction when there is a general decline in economic activity. It happens when there is a widespread drop in spending. Economists thus define a recession as a GDP decline in back-to-back quarters

Are we in Recession?

A lot of countries have already slipped into recession due to the lockdown imposed to curb the spread of coronavirus. US, Australia, Japan are among the several nations where the economy has been hampered due to the COVID-19 lockdown. India Faces Fourth Recession Since Independence, Indian Economy Shrinking 5% in FY 2020-21 Due to COVID-19 Pandemic, Says CRISIL.

What Happens in a Recession?

During a recession, as there is less demand, businesses begin to lose money. In order to control costs, companies, therefore, resort to layoffs, furloughs and other methods, which generate higher levels of unemployment.

Are US, Australia, India And Other Countries in Recession?

The U.S. economy entered a recession in February, a group of economists declared recently ending the longest expansion on record just as the novel coronavirus began swiftly spreading across the country. Japan’s economy sank into a recession last quarter and it is expected to get worse as households limit spending to essentials and companies defer hiring, cancel investment and production in order to stay afloat amid the pandemic. Australia has also slipped into recession according to recent reports. Other countries are also sailing in the same boat as they try hard to fight the economic crisis and its challenges.

Talking about India, the country is staring at the fifth recession, according to a Business Today report.  In independent India's history so far, four such years of negative GDP growth were registered. They saw contraction of -1.2 percent (FY58), -3.66 percent (FY66), -0.32 percent (FY73) and -5.2 percent (FY80). However, the recession that is now looming is different from previous recessions as it comes with new challenges.

According to a report on the Intelligencer, the US entered into a recession in February and it may be already over. The reason being, there are reports that the economy is growing again. US unemployment data added some ray of hope as it declined to 13.3 percent as economy restored 2.5 million jobs in May.  However, there has been no confirmation on this yet. But, the market opening up across the world are sure signs that the economy is making an attempt to revive. But, getting the economy back on track will be a long, tough road, and won’t be easy and straightforward. In addition to this, experts also fear that the economy could slow further if there is a second coronavirus wave.

(The above story first appeared on LatestLY on Jun 11, 2020 01:00 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).