A period of economic decline, officially defined as two or more consecutive quarters where GDP shrinks instead of grows. During a recession, businesses often lay off workers, unemployment rises, and consumer spending typically falls. Recessions are a normal part of economic cycles but can cause hardship for workers and investors.
A country's GDP might grow 2% in the first quarter, then shrink 1% in the second quarter, then shrink another 0.5% in the third quarter. This decline in economic output over two consecutive quarters would be labeled a recession.
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