Economy
Recession
Definition
A significant, widespread, and prolonged decline in economic activity, commonly defined as two consecutive quarters of negative GDP growth.
Explanation
Recessions are characterized by falling output, rising unemployment, declining consumer spending, and reduced business investment. The 2008 Global Financial Crisis and the 2020 COVID-19 downturn are recent examples. Central banks respond with rate cuts and stimulus, while governments increase spending. The NBER (US) officially declares recessions, often months after they begin.