Economic Recession

An economic recession is a period of significant decline in economic activity across the economy, lasting longer than a few months. It is typically marked by reduced consumer spending, falling business investment, rising unemployment rates, and shrinking gross domestic product (GDP). During a recession, businesses may struggle, leading to layoffs and decreased income for households, which further decreases demand for goods and services. Central banks and governments often respond with monetary and fiscal policies to stimulate growth and restore economic stability. Overall, a recession signifies a slowdown in economic performance, affecting the financial well-being of individuals and businesses alike.