What is a resecion?

A recession is an economic downturn characterized by a decline in GDP, widespread unemployment, and a decrease in consumer spending and investment. It typically lasts for at least two consecutive quarters and can result from various factors, including reduced demand, high inflation, or external shocks. During a recession, businesses may face lower revenues, leading to cost-cutting measures and further job losses. Government and central banks often respond with fiscal and monetary policies to stimulate the economy and promote recovery.