What does recession mean?

A recession is a period of time in which a country or region's economy produces negative growth, usually defined as two consecutive quarters of declining gross domestic product (GDP). Recessions are part of the economic cycle and correspond to economic growth.

Recessions are usually accompanied by a vicious cycle of rising unemployment, declining corporate earnings, falling industrial production, declining consumer confidence, and rising debt defaults. Recessions usually have a negative impact on people's lives and social stability.

Recessions can be caused by a variety of factors, including financial crises, natural disasters, global economic problems, inappropriate government policies, and overexpansion of manufacturing and service industries. Governments and other economic institutions usually take measures such as cutting taxes, providing loans, and adjusting monetary policies to stimulate economic growth, reduce unemployment, and stabilize the market.