A significant, widespread, and prolonged downturn in economic activity.
A recession is characterized by a decline in gross domestic product (GDP), employment, industrial production, and trade over a period of time, typically lasting more than a few months. It signifies a contraction in the economy, leading to job losses, reduced consumer spending, and lower business profits. Recessions can be triggered by various factors, including financial crises, sharp increases in interest rates, or significant drops in consumer and business confidence.