KUWAIT: Economic recession and its effects on unemployment, income levels, its duration, and ways to protect against its impacts, as well as its influence on the residential real estate market in Kuwait, are all concerns that people are focused on today given the current global conditions. Therefore, Kuwait Times conducted an interview with real estate analyst and trainer Ala’a Behbehani. Kuwait Times: What is an economic recession? Ala’a Behbehani: An economic recession is a decline in economic activity across various sectors and economies.
This is observed through a decrease in GDP, individual income, employment, production rates, and retail sales. KT: What is its impact? Behbehani: A recession means a market where buying and selling activities drop to a minimum level. It often leads to a near-absence of bank loans, meaning individuals and businesses may have to rely on their personal financial resources or bear the burden of high-interest debt.
This situation restricts growth and reduces sales. During such times, we can observe how experienced companies manage the crisis, while new companies often withdraw from the market. KT: What are the indicators and effects of recession? Behbehani: Decline in GDP (Gross Domestic Product), increase in interest rates, increase in inflation rates, decline in manufacturing sector index, decrease in retail and wholesale sales indexes, decrease in oil demand and drop in oil prices.
KT: How is it related to unemployment, income levels, a.