Finance Minister Nirmala Sitharaman on Wednesday said that India’s economic growth might have slowed down but there was no impending threat of a “recession”.
"Growth may have come down, but not a recession yet, and won't be a recession ever,"
FM Sitharaman said in the upper house of the Parliament.
Economists define a recession as a period of negative economic growth over two consecutive quarters.
The Indian economy expanded by 5 percent in the April-June quarter, its slowest pace since 2013. The projections are that it may have slowed down further in the second quarter, making six consecutive quarters of slowing growth, a first since 2012.
Here are ten countries that are facing economic recession:
Hong Kong GDP shrank 3.2 percent in July-September 2019 from the preceding period, contracting for a second straight quarter, according to the preliminary government data. Violent anti-government protests and the prolonged trade war between US and China have impacted the economy.
Mexico’s economy contracted by 0.1 percent on a quarterly basis in seasonally-adjusted terms during both the first and second quarters of 2019 after also shrinking by the same margin in the last three months of the previous year.
In a preliminary estimate published at the end of October, it was reported that the economy grew by 0.1 percent from the previous quarter during the July-September period. However, that figure was revised downwards to show that the economy stagnated.
Argentina just went through one of the worst stock market crashes in decades. Argentina’s inflation is running at an annual rate of above 50 percent. Moreover, interest rates are sky-high and the economy has been mired in recession for most of last year.
The German economy contracted 0.1 percent in the second quarter after an anemic 0.4 percent growth at the start of 2019. Germany is heavily reliant on manufacturing cars and other industrial goods to boost its economy but the global slowdown has impacted it severely.
A big slump in investments due to uncertainty over Brexit has resulted in growth falling to 0.2 percent in the second quarter after a weak 0.5 percent performance in the first quarter.
The third-largest economy in the eurozone entered a recession last year. The second-quarter growth was just 0.2 percent with concerns looming that it will turn negative.
Sluggish domestic demand and struggling exports led the South American economy to shrink 0.2 percent in the first quarter and it is widely expected to show negative growth again in the second quarter.
The prolonged US-China trade war hit the exports from Singapore that resulted in its economy contracting 3.3 percent in the second quarter from over 3 percent growth in the first quarter.
The South Korean economy shrank 0.4 percent in the first quarter but rose 1.1 percent in the second quarter. South Korean exports will have a severe impact due to its trade war with Japan which is expected to drag down growth further.
Economists believe Russia’s growing reliance on already slowing China is hurting its economy. Russia is struggling since 2014 after oil prices declined and there were sanctions imposed on it due to its military actions in Ukraine.