Recession

Article

A recession is a significant, widespread, and prolonged decline in economic activity. It usually involves falling output, employment, income, investment, production, and sales across much of the economy.

A common informal rule defines recession as two consecutive quarters of declining real gross domestic product, but official dating bodies often examine a broader range of monthly and quarterly indicators.

Recessions can be triggered by financial crises, tight monetary policy, collapsing asset prices, supply shocks, falling demand, excessive debt, war, pandemics, or loss of confidence. Causes and transmission mechanisms differ from one episode to another.

The effects include unemployment, business failures, reduced investment, weaker tax revenue, and financial stress. Governments and central banks may respond with lower interest rates, public spending, tax changes, credit support, or measures to stabilise the financial system.

Source details and credits

• Source / publisher: Wikipedia
• URL type: WWW
• Credits: Wikipedia
• URL: https://en.wikipedia.org/wiki/Recession