It has been stated at bloomberg that the country's statistics department expects us to face recession within 6 months from now. When this news comes out, it means we need to be prepared from now on and what we need to do based on what's gonna happen to the country’s economy.
Before we elaborate in more detail, everyone needs to know what recession is, so basically recession is a term used to tell the economic slowdown. Economic downturn can occur at the national, group, or global level. In the present case, recession takes place globally.
Metrics GDP decline growth, for example we have achieved Q1 is 3.5% but in Q2 we are only 2.7% and worse if it drops until negative.
So where does each country play a role in slowing the recession?
There are 2 ways:
- Stimulus packages like BPN that provide cash for the people to keep spending and cash flow within the country
- Interest rates are reduced, to encourage many to make loans
Nevertheless, it is necessary to know that these low stimulus packages and interest rates are just a relief if we cannot control our spending when cash is in our hand. In fact, we need to know that when people predict the recession of this factor as a metric.
○ Unemployment Rate
That is why our country frees 605,000 of our unemployed people and has to be fired. This does not include unpaid leave and deductions.
When this happens, they create the possibility of becoming one of the other tax deductions.
Logically, when tax collection is low, then the country is deprived of income and out comes the report that the country is losing income.
This effect also comes with many businesses will survive and those who do not have strong finances will fall into bankruptcy.
So as individuals, what are the things we need to be prepared?
By Siti Nur Khadijah