I. Retail
The retail industry is one of the most vulnerable sectors of the economy to recession. When consumers do not have enough purchasing power, they will not buy more goods. This will result in lower sales and profits for retailers. Therefore, retailers need to take measures such as reducing inventory levels and cutting costs to cope with the effects of recession.
II. Food and Beverage Industry
The food and beverage industry is also one of the industries that are more affected by the recession. During an economic slowdown, consumers usually eat out less often and choose to cook their own meals at home, which will lead to a decline in restaurant sales and profits. To counteract the effects of recession, restaurants can take measures such as launching promotions, reducing costs and developing new markets.
Third, real estate
The real estate industry is also an industry where the impact of recession is more obvious. During a recession, people are usually less willing to buy property, which leads to a decline in real estate sales. In addition, a recession can lead to an increase in the number of home foreclosures, bankruptcies, and vacant properties, which can affect the entire supply chain of the real estate industry.
Four: The automotive industry
The automotive industry is one that is highly dependent on the purchasing power of consumers. During a recession, people often delay their decision to purchase a new car, which leads to a decline in sales in the automotive industry, and manufacturers further reduce their sales targets to accommodate the decline in market demand.
V. Financial sector
The financial sector is an extremely important sector in the economic mechanism. In a recession, banks and other financial institutions usually refuse or reduce loans to individuals and businesses due to reduced consumer demand and business revenues. This will have a direct impact on the economy, contributing to a rise in non-performing loan ratios and deepening the recession.
In short, the above sectors will be among the first and most significantly affected during a recession. Therefore, in order to adapt to the changes of the recession, companies need to take measures such as reducing costs, repositioning the market, improving efficiency, etc. to cope with this change in the economic situation.