Recession

Recession

A significant decline in activity across the economy, lasting longer than a few months. It is visible in industrial production, employment, real income and wholesale-retail trade. The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country's gross domestic product (GDP); although the National Bureau of Economic Research (NBER) does not necessarily need to see this occur to call a recession.

Recession is a normal (albeit unpleasant) part of the business cycle; however, one-time crisis events can often trigger the onset of a recession. The global recession of 2008-2009 brought a great amount of attention to the risky investment strategies used by many large financial institutions, along with the truly global nature of the financial sytem. As a result of such a wide-spread global recession, the economies of virtually all the world's developed and developing nations suffered extreme set-backs and numerous government policies were implemented to help prevent a similar future financial crisis.

A recession generally lasts from six to 18 months, and interest rates usually fall in during these months to stimulate the economy by offering cheap rates at which to borrow money.


Investment dictionary. . 2012.

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  • Recession — Récession Cette page d’homonymie répertorie les différents sujets et articles partageant un même nom …   Wikipédia en Français

  • Recession — Re*ces sion, n. [Pref. re + cession.] The act of ceding back; restoration; repeated cession; as, the recession of conquered territory to its former sovereign. [1913 Webster] …   The Collaborative International Dictionary of English

  • recession — (n.) temporary decline in economic activity, 1929, noun of action from RECESS (Cf. recess) (q.v.): The material prosperity of the United States is too firmly based, in our opinion, for a revival in industrial activity even if we have to face an… …   Etymology dictionary

  • Recession — Re*ces sion (r[ e]*s[e^]sh [u^]n), n. [L. recessio, fr. recedere, recessum. See {Recede}.] 1. The act of receding or withdrawing, as from a place, a claim, or a demand. South. [1913 Webster] Mercy may rejoice upon the recessions of justice. Jer.… …   The Collaborative International Dictionary of English

  • recession — index capitulation, decline, erosion, outflow Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • recession — [n] reversal of action; reduction of business activity bad times*, bankruptcy, big trouble*, bottom out*, bust, collapse, decline, deflation, depression, downturn, hard times*, inflation, rainy days*, shakeout*, slide, slump, stagnation,… …   New thesaurus

  • recession — ► NOUN ▪ a temporary economic decline during which trade and industrial activity are reduced. DERIVATIVES recessionary adjective …   English terms dictionary

  • recession — recession1 [ri sesh′ən] n. [L recessio < pp. of recedere: see RECEDE1] 1. a going back or receding; withdrawal 2. a procession leaving a place of assembly 3. a receding part, as of a wall 4. Econ. a temporary falling off of business activity… …   English World dictionary

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  • recession — noun ADJECTIVE ▪ bad, deep, major, serious, severe, sharp, steep ▪ It was the worst recession since the war. ▪ …   Collocations dictionary

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