Economic Recession Definition Pdf

Businesses investors and government officials track various economic indicators.

Economic recession definition pdf. The nber defines a recession more broadly as a significant decline in economic activity spread across the economy lasting more than a few months normally visible in real gdp growth real personal income employment industrial production and wholesale retail sales nber 2003 1. Broadly defined a recession is a downturn in a nation s economic activity. Recessions are typically shorter than the periods of economic expansion that they follow but they can be quite severe even if brief. Economic recession is a period of time when a nation s gdp per capita declines for at least two consecutive quarters in a quarter to quarter comparison.

If quarterly nation s gdp per capita is not available it can be easily computed from nation s gdp and population change. The committee broadly defines a recession as a significant decline in economic activity spreading across the economy lasting more than a few months the committee considers a wide range of indicators with. In economic terms a recession can be defined as two consecutive declines at an activity level measured as the gross domestic product gdp for example with this concept often being used as a. A recession begins when the economy reaches a peak of activity and ends when the economy reaches its trough.

A recession begins just after the economy reaches a peak of activity and ends as the economy reaches its trough. A recession is a period of declining economic performance across an entire economy that lasts for several months. Gdp is the market value of all goods and services produced within a. A recession is 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.

An economic recession is typically defined as a decline in gross domestic product gdp for two or more consecutive quarters.