Recession: The Economic Downturn | Frenly Divine

A recession is a period of economic decline, typically defined as a decline in gross domestic product (GDP) for two or more consecutive quarters. The National Bureau of Economic Research (NBER) is the official arbiter of recessions in the United States, dating back to the 1850s. According to NBER, the average recession lasts around 11 months, with the most recent one being the COVID-19 recession in 2020, which lasted only two months but had a significant impact on the global economy. The consequences of a recession can be severe, including high unemployment rates, reduced consumer spending, and decreased business investment. Historically, recessions have been triggered by various factors, including monetary policy, global events, and financial crises. The 2008 global financial crisis, for instance, led to a recession that lasted 18 months, with the global economy contracting by 1.7% in 2009, as reported by the International Monetary Fund (IMF).