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Recession Meaning: Definition, Examples, and Translations

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recession

[rɪˈsɛʃən ]

Definitions

Context #1 | Noun

economic downturn

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.

Synonyms

depression, economic downturn, slump.

Which Synonym Should You Choose?

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Word Description / Examples
recession

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. The term is used in both formal and informal situations to describe a moderate economic decline.

  • The country is expected to enter a recession next year.
  • During the recession, many businesses were forced to close.
economic downturn

A general term to describe a decline in economic activity. It can refer to any reduction in the gross domestic product (GDP) and other economic indicators. This phrase is neutral and can be used in both professional and casual conversations.

  • The global pandemic has led to an economic downturn in many countries.
  • Companies are tightening budgets in response to the economic downturn.
depression

A severe and prolonged downturn in economic activity. A depression is characterized by its length, very high unemployment, and massive declines in economic output. This term is used for very serious economic situations and often carries a negative connotation.

  • The Great Depression of the 1930s had devastating impacts worldwide.
  • Experts fear the economic crisis could spiral into a depression.
slump

A sudden severe or prolonged fall in the price, value, or amount of something. This term is often used informally and can refer to a variety of economic declines, not just limited to GDP.

  • The real estate market is experiencing a slump.
  • There was a slump in sales last quarter.

Examples of usage

  • The recession of 2008 was caused by the subprime mortgage crisis.
  • Many businesses struggled to survive during the recession.
  • The government implemented various measures to combat the effects of the recession.
Context #2 | Noun

general decline

A recession can also refer to a general decline in something, such as a reduction in the number or quality of something.

Synonyms

decline, downturn, drop.

Which Synonym Should You Choose?

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Word Description / Examples
recession

This word is used in an economic context to describe a significant decline in economic activity spread across the economy, lasting more than a few months. It has a serious and formal tone.

  • The country is facing its worst recession in decades.
  • During the recession, many businesses were forced to close.
decline

This word can be used to describe a gradual decrease in various contexts, such as business, health, or popularity. It does not necessarily imply a serious situation.

  • There has been a steady decline in the company's profits.
  • The patient's health has shown a decline over the past few weeks.
downturn

This is often used in economic contexts to describe a period when the economy becomes weaker or less successful. It indicates a negative trend but not as severe as a recession.

  • The company is navigating through an economic downturn.
  • There has been a noticeable downturn in consumer spending.
drop

This word is used to describe a quick decrease in level, amount, or value in various contexts. It is often used in more casual conversation and can refer to things like temperature, prices, or stock values.

  • There was a sudden drop in temperature last night.
  • The stock market saw a sharp drop yesterday.

Examples of usage

  • There has been a recession in the quality of customer service at this company.
  • The neighborhood experienced a recession in property values.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

Economic History

  • The Great Depression in the 1930s is one of the most well-known long recessions, where many people lost jobs and homes.
  • Recessions can happen periodically, often as part of the business cycle when economies naturally expand and contract.
  • The National Bureau of Economic Research (NBER) in the USA defines a recession as a significant decline in economic activity lasting more than two months.

Psychology

  • During a recession, stress levels may rise due to job insecurity and financial strain, affecting mental health.
  • People tend to become more cautious with their spending, which can lead to decreased consumer confidence and further economic slowdown.
  • Economic downturns often lead to changes in social behavior, where communities may rely more on local support systems.

Pop Culture

  • Films like 'The Big Short' highlight events leading to past recessions, showing how key decisions can impact everyday lives.
  • Music and art often reflect the feelings of a time, with many songs addressing struggles during economic downturns.
  • Books and documentaries about financial crises frequently examine the cautionary tale of recessions and their lasting effects.

Government Response

  • During recessions, governments may introduce stimulus packages to boost spending and help unemployed people.
  • Monetary policies, like lowering interest rates, are strategies used by central banks to make borrowing cheaper and stimulate growth.
  • Historically, job creation programs and public works initiatives have been implemented to counteract the effects of recessions.

International Impact

  • Recessions can be global events, with economic downturns in one country impacting trade and jobs in others.
  • The 2008 financial crisis led to a worldwide recession, illustrating how interconnected economies can affect global markets.
  • Diverse countries respond differently to economic downturns, influenced by their own financial systems and government policies.

Origin of 'recession'

The term 'recession' originated from the Latin word 'recessus', which means 'withdrawal' or 'retirement'. It was first used in the context of economics in the early 20th century to describe a temporary economic decline. The concept of recessions has been studied extensively by economists to understand the causes and effects of these periods of negative economic growth.

See also: recess, recessed, recessing.

Word Frequency Rank

Position #7,671 indicates this is an advanced-level word. While not essential for basic communication, it will enhance your ability to understand and create more nuanced content.