What Is Economic Recession
When GDP growth is negative for two consecutive quarters or more. For all practical purposes though, a recession starts when there are several quarters of slowing but still positive growth. The first quarter of negative growth in a recessioncycle is often followed by positive growth for several quarters, and then another quarter .of .negative.growth.
This definition is somewhat unpopular with many economists as it does not take intoconsideration changes in other economic variables such as current unemploymentrates.or .consumer .confidence.and.spending.levels.
The official agency in charge of declaring that the economy is in a state of recessionis the NATIONAL BUREAU OF ECONOMIC RESEARCH (NBER). NBER'Sdefines recession as a "significant decline in economic activity lasting more than afew months" For this reason, the official designation of recession may not comeuntil.after .we.have. been.in.one.for .as.ubstantial.amount.of .time.
It is actually quite natural for countries to experience mild economic recessions. Thisis a built-in factor of a society economic cycle as spending and consumption aregoing.to.increase.and.decrease.along.with. prices.
Rarely, experiencing many of these factors simultaneously can evoke deepeconomic recession or depression