Recession (economics)
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Terminology
The terms recession and depression are used colloqually to describe any deep or persistant decline in economic activity, and sometimes to a persistant reduction in the rate of growth of ouput. More precise definitions have been adopted the statistics authorities. In the United States the National Bureau of Economic Research defines a recession as
- a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale retail sales[1][2]
Other authorities have usually defined it as
- a period of of negative growth of GDP lasting for at least two quarters
Before 1930, what are now termed recessions were referred to as "depressions". That term is nowadays reserved for exceptionally severe or prolonged recessions. It has been suggested that the term depression is conventionally applied to a decline in real GDP that exceeds 10%, or one that lasts more than three years[3].