WTF is a Recession? And are we in one?
(Image credits: Unsplash)
I wanted to explain what a recession is.
Because you will be hearing this word a lot lately and depending on how bad it gets, you are likely to feel its effects.
So what exactly is a recession?
Recession is a term used to describe a slowdown in a country's economic activity. This can be seen as a decline in the Gross Domestic Product (GDP), increased unemployment, and decreased industrial production, trade, and investment. A recession is typically considered to be a more severe form of economic slowdown, lasting longer than a simple dip in the business cycle.
Now, I know I didn’t explain anything and might have made it sound more complicated.
So let me explain it in the form of a story.
Let's take an example of a small town called