Can a recession be avoided when industry is in recession?
Industry is in recession in the United States, the euro zone, Japan and China under the effect of a sharp decline in household and corporate demand for industrial products and new environmental standards. Is it possible for an economy as a whole to continue to grow and avert a recession if industry itself is in recession? We believe the answer is yes: Industry is quite small, e ven including industry- related services. The countries where this is not the case (for example Germany) are in an economywide recession, but this is not the norm; If the trigger is the shift in demand from industry to services, then there will be a recession in industry but strong growth in services; Services have a very high capacity to create jobs.