Recession

Definition

A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales. It's a period where the economy slows down, and businesses and consumers reduce spending due to uncertainty or financial pressures.

Related terms

Gross Domestic Product (GDP):

The total value of all goods and services produced over a specific time period within a country's borders; it's often used as an indicator of economic health.

Unemployment Rate: The percentage of the labor force that is jobless and actively looking for employment; it typically rises during a recession.

Economic Growth:

An increase in the production of goods and services in an economy over time; it represents the opposite phase of the business cycle compared to a recession