A recession is a period of reduced economic activity in the business cycle, characterised by contractions in GDP, retail sales, manufacturing, employment, and other areas. Typically, the term is used when GDP falls for two or more consecutive quarters.

Recessions are unavoidable in the business cycle, which has peaks and valleys. This means that whenever there is a bull market, there will be a subsequent downturn as economies fall from their peaks.

A recession is a significant decline in economic activity across the economy, lasting for an extended period, typically recognized by two consecutive quarters of negative GDP growth. During a recession, businesses see reduced sales, leading to lower production, job cuts, and increased unemployment. Consumer spending declines as people become more cautious with their finances, and investment decreases due to uncertainty about future economic conditions.

Recessions are often triggered by various factors, such as high inflation, rising interest rates, or financial crises. Central banks and governments may respond with policies like lowering interest rates or increasing government spending to stimulate the economy. While recessions can be challenging, they are part of the natural economic cycle and can eventually lead to recovery and growth.