Question : RBI has coined two new words (Technical recession & Nowcast) in its November bulletin. In simple terms, ‘technical recession’ refers to a situation when a country’s economy has contractions for –
(a) three consecutive quarters
(b) four consecutive quarters
(c) five consecutive quarters
(d) none of the above
Answer (d)
Related facts
- RBI has coined two new words(Technical recession & Nowcast) in its November bulletin.
- It is notable that recession is a common term for economy. But for the first time the Reserve Bank of India (RBI) has added the word ‘technical’ with the recession.
- In simple terms, ‘technical recession’ refers to a situation when a country’s economy has contractions for two consecutive quarters.
- While Nowcasting gives details of near future.(A forecast)
Nowcasting is a part of bulletin.
Key findings of bulletin
- India has entered a technical recession in the first half of 2020-21 for the first time in its history.
- India’s economy probably shrank for a second straight quarter.
- Gross domestic product contracted 8.6% in the quarter ended September.
- The economy had slumped about 24% in April to June.
- GDP growth projections(2020) for major countries are as follows : –
| Country | April WEO | June WEO update | October WEO |
| USA | -5.9 | -8.0 | -4.3 |
| UK | -6.5 | -10.2 | -9.8 |
| JAPAN | -5.2 | -5.8 | -5.3 |
| CHINA | 1.2 | 1.0 | 1.9 |
| BRAZIL | -5.3 | -9.1 | -5.8 |
| RUSSIA | -5.5 | -6.6 | -4.1 |
| SOUTH AFRICA | -5.8 | -8.0 | -8.0 |
| INDIA | 1.9 | -4.5 | -10.3 |
| WORLD | -3.0 | -4.9 | -4.4 |
By — Pankaj Pandey
Link:
https://rbidocs.rbi.org.in/rdocs/Bulletin/PDFs/BULLETINNOV20204D16D01144684B1393353EABDFA86897.PDF
https://economictimes.indiatimes.com/news/economy/indicators/india-in-historic-technical-recession-signals-rbi-in-its-first-ever-nowcast/articleshow/79182603.cms?from=mdr