What Is a Recession? A Beginner’s Guide
A recession is a broad decline in economic activity. Learn how recessions are defined, what causes them, which warning signs matter, and how economies and markets recover.
A recession is a broad and sustained decline in economic activity. Recessions can reduce employment, income, production, investment, and consumer confidence, although their causes, depth, and duration vary considerably. These guides explain recession definitions, common warning signs, historical examples, sector effects, and policy responses. Learn how economists distinguish recessions from temporary slowdowns and how households, businesses, governments, and markets typically respond to weakening conditions.