Global Markets Beginner

Recession

💡 In plain English: When the economy shrinks for two consecutive quarters — companies cut jobs, spending falls, and markets often decline.

Definition

A significant decline in economic activity lasting more than a few months, typically visible in GDP, income, employment, and retail sales.

📌 Real-World Example

India's GDP contracted during COVID Q1 2020 (−23.9% YoY). Typical recession impacts: rising unemployment, falling corporate profits, bear stock markets.

Related Terms

Bear Market
When stock prices are falling broadly — investors are fearful and selling.
Inflation
The rate at which prices rise over time — eroding the buying power...
GDP (Gross Domestic Product)
The total value of everything a country produces in a year — the...
Central Bank / Repo Rate
The interest rate at which the central bank lends to commercial...
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