Syllabus: GS-III
Subject: Economy
Topic: Inflation
Issue: Inflation
Why in news? Recession in Japan and United Kingdom (UK)
Synopsis:
- The UK slipped into a shallow recession in the second half of 2023.
- It is considered it as a technical recession as two consecutive quarters recorded falling in output.
- But the small scale of declines suggests stagnation rather recession.
Prelims Connect (Terms in News):
| Stagflation
It defines a situation characterized by a simultaneous increase in prices and stagnation of economic growth. It comprises of the following elements- 1) The growth rate of the economy slows down 2) the level of unemployment remains steadily high 3) yet the inflation or price level remains high at the same time. Technical Recession: ·        A technical recession occurs when there are two consecutive quarters of negative economic growth, as measured by GDP ·     It signifies a downturn in economic activity but may be relatively mild and short-lived compared to a regular recession. |
