A recession is a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters. Unemployment tends to increase, while investment and business confidence fall. As economies become more globalized, recessions can spread from one country to another and become worldwide.
Recessions can have a significant impact on individuals, businesses, and the overall economy. Individuals may experience job losses, wage cuts, and reduced access to credit. Businesses may see a decline in sales, profits, and investment. The overall economy may experience a slowdown in growth, inflation, and a rise in unemployment. It is important to take steps to combat a recession in order to minimize its negative impact.