A recession in the economy is a significant decline in economic activity that is widespread across the economy and lasts for more than a few months. It is typically visible in key indicators such as real GDP, real income, employment, industrial production, and wholesale-retail sales
. Commonly, a recession is identified by two consecutive quarters of negative GDP growth, but official definitions, such as that used by the U.S. National Bureau of Economic Research (NBER), consider a broader set of economic measures and the overall duration and spread of the decline
. Recessions generally occur due to a drop in spending (an adverse demand shock) and can be triggered by various factors including financial crises, supply shocks (like sudden increases in input prices), bursting economic bubbles, or external shocks such as natural disasters or pandemics
. During recessions, economic output contracts, unemployment rises, and consumer and business spending decline
. Governments typically respond to recessions with expansionary fiscal and monetary policies to stimulate growth, such as lowering interest rates, increasing money supply, or boosting government spending
. In summary, a recession is a period of economic downturn marked by falling economic activity across multiple sectors, lasting more than a few months, and often measured by declines in GDP and employment
