What is the definition of recession?

Beginners

A recession is a period of time when the economy of a country is not doing well. During a recession, there is usually less money available, people lose their jobs, and businesses may struggle or close.

Intermediate

A recession is a significant decrease in economic activity lasting more than a few months, typically characterized by a decline in gross domestic product (GDP), employment, and income. It is often associated with a widespread decline in business activity and lower levels of consumer spending. During a recession, businesses may cut back on production, lay off workers, and reduce investment. The effects of a recession can be felt across the economy, impacting individuals, households, and communities.

Advanced

A recession can be defined as a significant decline in economic activity, typically characterized by decreased demand for goods and services, declining production and employment rates, and decreased consumer or business spending. It is often considered a period of widespread economic contraction that lasts for at least six months and can have long-lasting effects on employment, incomes, and economic growth. A recession is often preceded by a period of economic expansion and is typically associated with declines in consumer confidence, business investment, and financial market values.