Economics2 min read
RecessionGerman: Rezession
A recession is a period of declining economic activity. It can affect production, employment, income and demand.
In plain language
Two consecutive quarters of falling real GDP are often called a technical recession. Assessing the broader economy requires additional indicators and attention to how long the decline lasts.
Let’s make it concrete
When firms produce less and households cut spending, economic weakness can reinforce itself.
Simplified example for illustration.Worth understanding
One weak indicator does not establish a broad recession. Markets and the real economy can also move differently for a time.
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For further learning and reference:
Financial education for orientation. No individual investment, tax or legal advice.
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