What does economic recovery mean?

"Economic recovery" refers to the period when economic activities begin to improve, that is, the period when the economy moves from depression to prosperity. This period is also called "economic depression" period.

Economic depression leads to a decrease in consumer demand, which in turn leads to a decline in corporate profits, which in turn leads to business difficulties, unemployment and bankruptcy. In order to restore economic growth and stabilize employment, countries usually take some economic stimulus measures to increase demand.

Because "economic recovery" is temporary and predictable, it can be understood as a temporary dormant period during the economic recession. Since 1990s, the global economy has entered a new stage of development. After 20 years of downturn, the GDP growth rate of developed countries began to pick up gradually.

However, developing countries in the recovery stage often face the dual pressures of deflation and unemployment. Therefore, governments all over the world are adopting active fiscal policies to deal with the possible factors of economic recovery.

Incentive measures:

In economics, economic depression is called recession, because during the economic depression, consumers' spending power declines, enterprises have difficulties in production and operation, and unemployment problems begin to appear. In order to promote economic growth and stabilize employment, governments all over the world often take a series of measures to stimulate investment and consumption to promote economic growth and increase enterprise investment.

In this context, governments around the world also attach great importance to expanding consumer demand. In order to stimulate consumption, many countries have introduced stimulus policies.