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 is officially recognized after two consecutive quarters of economic decline as reflected by GDP.

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.

Unemployment Rate:

The percentage of the total labor force that is unemployed but actively seeking employment and willing to work.

Economic Recovery: A period of increasing business activity signaling the end of a recession