Concept: May 17, 2022. What is a Recession?

A recession is a period of a slow down of the economic activity in a given geographical area characterized by increased unemployment and a decline in real income. The working definition that has been most popular is the one that requires a decline in the GDP for 2 consecutive quarters.

The decline in the economic activity is seen as a reduction in the production of goods and services, i.e., a decline in industrial output, increase in unemployment, and decreased sales (wholesale and retail).

A depression is an extreme form of recession. Although there is no existing working definition, the decline in GDP can reach 30%, the unemployment can reach 25% and it can last several years.

For further information, please read the following post.

This post is intended to only raise awareness. In order to make actual financial decisions please contact your financial advisor and/or tax advisor prior to making the decision.