Recession: meaning, definitions and examples

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.

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.

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.

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.

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.

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.

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.

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.