RecessionBack to Glossary
If you imagine economic cycles as waves alternating from high to low, a recession is simply what takes place on the downward slope of that wave. Different economies have different metrics for officially classifying when they have entered a recession. For instance, in the United States a recession is defined as a general economic slowdown that lasts for longer than several months and is reflected in economic indicators such as income, unemployment, GDP, retail sales and others. The UK simply defines it as a reduction in economic activity that carries on for two fiscal quarters in a row.
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