Recession and Recovery

A recession is a significant decline in economic activity that lasts for an extended period, typically marked by falling GDP, rising unemployment, and decreased consumer spending. It often results from factors like reduced business investment or external shocks. Recovery, on the other hand, follows a recession and is characterized by a return to economic growth, increased employment, and rising consumer confidence. This phase is essential for rebuilding stability, as businesses resume hiring and spending increases. Together, these cycles are a natural part of the economy's ebb and flow, reflecting changes in production, employment, and overall economic health.