What industries will be affected by the economic crisis?

A recession can affect several industries, but the following are usually the first to be affected:

1. Real estate industry: The real estate industry is one of the most susceptible industries to a recession. When there is a recession, there is a general financial crunch and a reduced demand for homeownership, leading to a slump in the real estate market. In addition, lending by financial institutions is tightened, and real estate development and land investments are restricted.

2. Retail: During a recession, consumer confidence drops and purchasing power declines, leading to a drop in retail sales. In addition, retail companies face various challenges due to tightened corporate finances and may reduce the number of stores they open or downsize their workforce.

3. Financial sector: During a recession, there is a general reduction in spending, an inability to repay loans on time, a large number of defaults on loans, and mounting balance sheet losses for banks and other financial institutions. In addition, the profitability of financial institutions is affected and risky investments may not pay interest.

4. Manufacturing: As a recession reduces the purchasing power of consumers and businesses, demand in the manufacturing market will also decline, leading to production line shutdowns and employee layoffs.

In short, a recession can have an impact on a wide range of industries, exposing many companies to bankruptcy and closure.