Definition of recession
Published: Sep 3, 2001 11:13 AM | Updated: Jan 29, 2008 6:21 PM
In response to the article entitled 'Are we in recession or are we not?' by Harun Rashid, the simple answer is no, at least, not yet.
A recession is defined as two consecutive quarters of negative growth, but not decline in growth! As long as there is growth, there can be no recession.
Indeed, the growth figure for the second quarter is questionable. Even if Bank Negara has manipulated the figures to show slight growth, that does not mean we are in a recession, since we have growth in the first quarter!
Let's not jump the gun too soon, shall we?
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