Definiation of recession in general

[WilliamCave]

I was reading the defination of a recession .

Don't quite me on this but if an economy shrinks for so many months or quarters cou,d be classified as a recession .

Could some one shed more info on this

And relate it to the Thai economy

Thanks

[ATF]

A recession is usually determined by 2 consecutive quarters of negative GDP or economic growth. Thai figures for the last quarter were published this morning and they showed -0.1% GDP so another quarter like this and Thailand will officially be in recession. However as we all know there are many other factors affecting these figures not just plain economics. In a real recession you would expect interest rates to drop to support the economy and the associated drop in value of the Baht.

A more valid indicator of a recession would be the SET. If it moved below it's 200 day moving average. That is an official bear market. I can't see that happening. Thai Sovereign Bonds are good value now compared with their Asian peers.

Hope this helps.

[WilliamCave]

A recession is usually determined by 2 consecutive quarters of negative GDP or economic growth. Thai figures for the last quarter were published this morning and they showed -0.1% GDP so another quarter like this and Thailand will officially be in recession. However as we all know there are many other factors affecting these figures not just plain economics. In a real recession you would expect interest rates to drop to support the economy and the associated drop in value of the Baht.

A more valid indicator of a recession would be the SET. If it moved below it's 200 day moving average. That is an official bear market. I can't see that happening. Thai Sovereign Bonds are good value now compared with their Asian peers.

Hope this helps.

Thanks for the explanation , it is in lingo I can understand