The last phase in the economic cycle. A period of temporary economic decline, typically defined by a fall in GDP in two consecutive quarters.
The Housing Market and Mortgage Crisis of the late 2000s caused a recession, lasting from December 2007 to June 2009.
While a recession is typically defined by a fall in GDP for two consecutive quarters, it is officially declared by the National Bureau of Economic Research. Recessions are a part of the economic cycle, and fortunately, the shortest part of the cycle, followed by recovery and a return to economic expansion.« Back to Glossary Index