Recession
Recession refers to an economic state that is characterised by significant decline in economic activity, GDP growth and employment. Economic recession usually last for just a few months. However, when not addressed immediately or when it sustained, a recession may become a depression, a long term and severe form of recession accompanied by high unemployment, low prices and low levels of trade and investment–like the one experienced by many of the world’s economies between 1929 and 1930s.
Showing the credit crunch and the financial crisis we face.
As to what causes a recession is still debatable, but economists have identified the tell-tale signs of this economic event. The following are some of these signs: decline in consumer spending, constant and sharp rise in unemployment, high commodity price inflation, decline in asset and commodity prices, and GDP growth decline.