Recession: The Economic Downturn | Play Quizzes LA

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, and it considers factors such as employment rates, personal income, and industrial production when making its determinations. The effects of a recession can be far-reaching, with widespread job losses, reduced consumer spending, and decreased economic output. According to the International Monetary Fund (IMF), the global economy experienced a recession in 2020, with a 3.3% contraction in GDP. The COVID-19 pandemic was a major contributing factor, with widespread lockdowns and supply chain disruptions. As of 2022, the global economy is still recovering from the pandemic-induced recession, with the World Bank predicting a 4.1% growth in GDP for 2023.