What is a recession?

[Delilah]

I’ve been hearing a lot about what is a recession in the news and financial discussions lately. Can someone explain it in simple terms and what it means for the economy and everyday people?

 

[Cinderella]

A recession is a period of economic decline where a country’s economy slows down, typically marked by reduced GDP, job losses, lower spending, and decreased business activity for several months.

 

[darrensammy]

Recession refers to a season when an economy of a country shrinks over a number of months. It is typically characterized by decreased business activity, increased unemployment and decreased consumer spending. Economists normally describe it as two quarters of negative GDP growth or in other words, the economy is not growing, it is shrinking.

 

[zuri]

It’s basically when the economy slows down for a while like people spend less, businesses earn less, and jobs can get tighter, so you might feel it through higher stress about money or fewer opportunities around you.