Economic recession

Definition

An economic recession refers to a period of temporary economic decline characterized by a decrease in gross domestic product (GDP) for two consecutive quarters. It typically involves a contraction in various economic activities, rising unemployment rates, and reduced consumer spending.

Related terms

Depression: A severe and prolonged downturn in the economy characterized by high unemployment rates, drastic declines in production and trade, and overall negative impact on society.

Business Cycle: The alternating periods of expansion (economic growth) and contraction (recession) in an economy.

Unemployment Rate: The percentage of the labor force that is jobless and actively seeking employment.