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Impact of Recession on GDP:

Years GDP Change in %


2002-03 4.0 -
2003-04 8.1 102.50
2004-05 7.0 -13.58
2005-06 9.5 35.71
2006-07 9.6 1.05
2007-08 9.3 -3.12
2008-09 6.7 -27.96
2009-10 8.6 28.36
2010-11 9.3 8.14
2011-12 6.2 -33.33
2012-13 5.4 -12.90



Interpretation:
The table above shows that the GDP of the country was increasing till 2007-2008. After 2007-
2008 due to the impact of American recession the GDP started to decrease. In 2010-2011 the
GDP seem to consolidate but due to the European Crisis till know it is moving in a down trend.
0.0
2.0
4.0
6.0
8.0
10.0
12.0
GDP
GDP
Impact of Recession on Investment Growth:












Interpretation:
The table above shows that the Investment Growth of the country was in an uptrend till 2007-
2008. After 2007-2008 due to the impact of American recession the Investment Growth started
to decrease. In 2010-2011 the Investment Growth seems to consolidate but due to the
European Crisis till know it is moving in a down trend.
-5
0
5
10
15
20
25
30
Investment Growth
Investment Growth
Years Investment Growth Change in %
2002-03 -0.4 -
2003-04 10.6 2750.00
2004-05 24 126.42
2005-06 16.2 -32.50
2006-07 13.8 -14.81
2007-08 16.2 17.39
2008-09 3.5 -78.40
2009-10 7.7 120.00
2010-11 14 81.82
2011-12 4.4 -68.57
2012-13 2.3 -47.73
Impact of Recession on Average Wholesale Price Index Inflation:

Years Avg WPI Inflation Change in %
2002-03 3.4 -
2003-04 5.5 -61.76
2004-05 6.5 18.18
2005-06 4.5 -30.77
2006-07 6.6 46.67
2007-08 4.7 -28.79
2008-09 8.1 72.34
2009-10 3.8 -53.09
2010-11 9.6 152.63
2011-12 8.9 -7.29
2012-13 7.6 -14.61


Interpretation:
The table above shows that the Average Wholesale Price Index Inflation of the country was
consistently low till 2007-2008. After 2007-2008 due to the impact of American recession the
Avg WPI inflation started to Increase. In 2010-2011 and 2011-2012 it is reasonably high i.e. 9.6
and 8.9 respectively.


0
2
4
6
8
10
12
Avg WPI Inflation
Avg WPI Inflation
Impact of Recession on Current Account Deficit:

Years CAD Change in %
2002-03 0 -
2003-04 0 0.00
2004-05 0.4 0.00
2005-06 1.2 200.00
2006-07 1 -16.67
2007-08 1.3 30.00
2008-09 2.3 76.92
2009-10 2.8 21.74
2010-11 2.8 0.00
2011-12 4.2 50.00
2012-13 4.7 11.90


Interpretation:
The table above reveals that the Current Account Deficit of the country was increasing with a
smaller rate till 2007-2008 except in 2004-2005. After 2007-2008 due to the impact of American
recession the Current Account Deficit started to Increase with higher rate i.e. 76% in 2008-2009
and 50% in 2011-2012. In the year 2012-2013 it has increased by 11.90% i.e. 4.2 to 4.7%.

0
1
2
3
4
5
CAD
CAD
Impact of Recession on Unemployment Rate:

Years Unemployement rate Change in %
2002 8.8 -
2003 9.5 7.954545
2004 9.2 -3.15789
2005 8.9 -3.26087
2006 7.8 -12.3596
2007 7.2 -7.69231
2008 6.8 -5.55556
2009 10.7 57.35294
2010 10.8 0.934579
2011 9.8 -9.25926


Interpretation:
The table above reveals that the Unemployment Rate of the country was decreasing till 2008.
After 2008 due to the impact of American recession the Unemployment Rate started to
Increase and reached 10.7% and 10.8% in 2009 and 2010 respectively. There is a small decrease
in Unemployment Rate in 2011 i.e. 9.8%.

0
2
4
6
8
10
12
Unemployement rate
Unemployement rate
Impact of Recession on Industrial production growth rate:

Years
Industrial production
growth rate Change in %
1999 6 -
2000 7.5 25.0
2002 6 -20.0
2003 6.5 8.3
2004 7.4 13.8
2005 7.9 6.8
2006 7.5 -5.1
2007 8.5 13.3
2008 4.8 -43.5
2009 9.3 93.8
2010 9.7 4.3
2011 4.8 -50.5


Interpretation:
The table above shows that the Industrial production growth rate of the country was increasing till
2008. After 2008 due to the impact of American recession the Industrial production growth rate
started to decrease and reached 4.8% which is the lowest growth rate in the decade. In the year
2009 and 2010 it seems to consolidate by reaching to the highest level of growth rate i.e 9.3%
and 9.7% respectively. The year 2011 recorded lowest growth rate due to European Recession.
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10
12
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9
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9
2
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2
0
1
1
Industrial production growth rate
Industrial
production growth
rate
Impact of Recession on Inflation (consumer Price):
Years
Inflation(Consumer
Price)
Change in
%
1999 6.7 -
2000 5.4 -19.4
2002 5.4 0.0
2003 3.8 -29.6
2004 4.2 10.5
2005 4.2 0.0
2006 5.3 26.2
2007 6.4 20.8
2008 8.3 29.7
2009 10.9 31.3
2010 11.7 7.3
2011 8.9 -23.9


Interpretation:
The table above reveals that the Inflation Rate of the country was consistently around 4% to 6%
till 2008. After 2008 due to the impact of American recession the Inflation Rate started to
Increase and reached 11.7% in the year 2010 which is the highest inflation rate in a decade.
There is a small drop in inflation in 2011.

0
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12
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9
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2
0
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0
1
1
Inflation(Consumer Price)
Inflation(Consumer
Price)

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