Recession

A stretch where the economy is shrinking, not growing

In detail

A recession is a period when activity weakens broadly. Two straight quarters of falling GDP is the common shorthand, though the official call is made later using jobs and output as well. Company profits shrink, so share prices usually fall first: markets tend to move several months ahead of the economy itself.

Example

GDP falling for 2 quarters in a row is often called a recession.

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