Recession - Financial definition
Concise definition of the term recession
A recession is a significant decline in economic activity across the economy lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.
Comprehensive definition of the term recession
A recession often reflects a period of negative economic growth for two consecutive quarters or more, marked by widespread drops in spending and investment, rising unemployment, and decreased consumer confidence. Economists may also examine factors like declining corporate profits and slowing manufacturing output to identify a recession.
Historical examples include the recession of 2008, which was triggered by the collapse of the housing market. During such periods, governments and central banks typically implement fiscal and monetary measures, such as stimulus packages and interest rate cuts, to mitigate the downturn and stimulate recovery.