Economic recessions and their causes

On many occasions the entire planet has been involved in issues of economic recession, a problem that really goes beyond feeling a delay in finances, but covers much of the benefits that some nations have, achieving that these delay their progress due to the capture of interest that exist to face the recession.

An economic recession refers to the consequences that any catastrophic event brings in all its contemplations and of course the negative effect that this will create in the patrimony of those who are involved in the fact.

Globally, the economic growth of small nations has always been seen with good eyes, being these the economic bases for those developed countries, because simply the large nations maintain a close trade relationship with these, to ensure greater economic progress of their country and to help with the growth of the other.

However, there are times when we can see a great financial problem, since the capabilities of an underdeveloped or developing country are not the same as those of developed countries or countries that have great economic power, simply because these small countries cannot fully meet the commercial demands of developed nations.

When it comes to meeting financial agreements between developed nations, there is no problem, since both have agreed to terms that support these nations, thus ensuring that each has sustainable growth or can simply maintain a high status.

The problem lies when nations with a high purchasing power maintain economic relations with those countries that are not self-sustainable, but depend on external commercial activities and therefore their economy is not strong, much less considered stable, it is at that moment when the negotiation agreements are involved in embargoes by large nations to small ones.

It is impossible that an economic recession does not begin to form in both nations that are included in these events, simply because they will be involved in a cessation of functions for scarce resources in the case of the small nation and in the case of the developed country because the services, raw materials or those finished products that it would obtain after the negotiations, will not be fulfilled to perfection, causing an economic backwardness, with financial consequences, to such an extent that it could be forced to make loans those nations with a purchasing power greater than or equal to it.

These are some of the causes or examples we can see of economic recessions in the world. Many of these events are believed to happen in isolation, but the truth is that negotiations that take place on one side of the world affect the opposite side, since we are all mixed in some way in the economy and that is why the financial problems of some countries end up being a global projection and often the cause of problems without solutions.