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Recessionary Meaning: Definition, Examples, and Translations

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recessionary

[rษชหˆsษ›สƒษ™nษ™ri ]

Definition

Context #1 | Adjective

economic downturn

Recessionary refers to a period or condition characterized by a decline in economic activity, typically identified by a fall in GDP, employment, and consumer spending. Such periods often result in higher unemployment rates and lower levels of investment and consumption. This term is used to describe policies or practices that occur during a recession or its impacts on various sectors. It indicates an overall stagnation in economic growth and a potential for worsening financial conditions if the recession persists.

Synonyms

declining, depressed, economic downturn.

Examples of usage

  • The recessionary environment has led to job losses across many industries.
  • Governments often implement recessionary measures to stimulate economic growth.
  • During recessionary times, consumer confidence tends to decrease significantly.

Translations

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Interesting Facts

Economic History

  • The Great Depression, starting in 1929, was the most severe recession in modern history, affecting economies worldwide.
  • A recession is typically defined as two consecutive quarters of negative economic growth, measured by GDP.
  • In most recessions, unemployment rates rise as companies cut costs and reduce their workforce.

Impact on Society

  • During recessionary periods, consumer confidence drops, leading to reduced spending on non-essential items.
  • Many businesses may close or downsize, which can lead to increased poverty and social unrest.
  • Recessions often cause a rise in mental health issues as people struggle with job insecurity and financial stress.

Government Response

  • Governments often respond to recessions by implementing stimulus packages to boost spending and economic recovery.
  • Central banks may cut interest rates to encourage borrowing and investing during downturns.
  • Fiscal policies can be adjusted to stabilize the economy, affecting taxation and public spending.

Global Perspective

  • Recessions can vary by country; some nations recover quickly, while others may face long-term economic challenges.
  • Global interconnectedness means that a recession in one major economy can lead to downturns in others, illustrating the ripple effect.
  • Emerging markets often feel the effects of a recession sooner than developed countries due to reliance on exports.

Psychological Effects

  • Fear of economic instability can lead to consumers saving more money, contributing to a deeper recession.
  • Navigating through recessionary times often fosters innovation as companies look for new ways to cut costs and adjust to changing markets.
  • The experience of a recession can change consumer behavior long-term, making people more cautious about spending.

Origin of 'recessionary'

The term 'recessionary' is derived from 'recession,' which originates from the Latin word 'recessio,' meaning 'a going back, retreat.' In economic terms, recession refers to a significant decline in economic activity across the economy that lasts for a prolonged period. The word began to be widely used in the financial lexicon in the 20th century, particularly during economic downturns in the United States, as economists sought to describe periods of reduced economic performance. Over time, 'recessionary' has come to specifically qualify conditions, policies, or impacts associated with these downturns.

Word Frequency Rank

This word's position of #31,544 indicates it's among the more rare English words. While understanding it broadens your vocabulary, focus on more common words first.