What is a recession?
A recession is a significant decline in economic activity across the economy, lasting for an extended period, typically visible in GDP, real income, employment, industrial production, and wholesale-retail sales. It is often defined as two consecutive quarters of negative economic growth.
Recessions can result from various factors, including reduced consumer and business spending, high unemployment, and financial crises. During a recession, businesses may cut back on production and investments, leading to job losses and decreased consumer confidence.
Governments and central banks often respond with monetary and fiscal policies aimed at stimulating the economy and mitigating the downturn's effects.