Economicscalendar_todayLast updated: Apr 2026
What is Recession?
/rɪˈseʃən/
A recession is an economic downturn defined as two consecutive quarters of negative GDP growth. Jobs are lost, spending falls, and businesses cut back.
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Everyday Example
When a town's main factory closes, people spend less at local shops, which then cut staff, who spend even less — this chain reaction is what a recession looks like.
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“The 2008 Great Recession wiped out 8.7 million US jobs and caused household wealth to fall by £11 trillion globally.”
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Did you know?
The word "recession" was coined in the 1930s partly to avoid using the more alarming word "depression" in economic reporting.
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Key Insight
Recessions are part of the natural economic cycle. The key question is always how deep and how long — shallow recessions recover quickly, deep ones reshape economies.
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