Economic Impacts Child Marriage Global Synthesis Brief

When the economy is booming, consumers are eager to spend on luxury goods. When an economy slows or contracts, people become more cautious about how they spend their money. Many other things also change in a recession. People trade less and invest less in new ventures. These changes have effects on other countries. How a country responds to this type of stress test can make a big difference in how quickly its economy recovers and whether it slips into recession. Read on to learn more.

What is an Economic Recession?

A recession is a period of time when many industries contract.

During an economic recession, a drop in demand for goods and services causes a decline in business activity, a cut in company payrolls, and an increase in the number of unemployed people.

Recession Effects on Tourism

The first area to be impacted by a slowing economy is tourism. During a recession, consumers and companies cut back on travel. Their main reason for not traveling is the expense. The drop in tourism occurs worldwide, not just in one region.

Recession Effects on Job Outlooks

During an economic recession, hotel job outlooks are uncertain. Many hotels are forced to close their doors and go out of business. Those that remain open may have reduced staff or cutback on hours of operation.