Verbull Word of the day
Finance glossary

Recession

Macro · beginner
Definition

Two consecutive quarters of negative GDP growth.

A recession is a significant decline in economic activity spread across the economy, traditionally defined as two consecutive quarters of negative real GDP growth. The National Bureau of Economic Research officially dates U.S. recessions using a broader set of indicators including employment and income.

In a sentence

After two straight quarters of shrinking output, economists declared the country was in a recession.

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