Börsenlexikon: Recession

A recession is a significant decline in economic activity throughout the economy. It is usually visible in industrial production, employment, real income and wholesale/retail trade. The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country's gross domestic product (GDP). A recession is a normal (although unpleasant) part of the business cycle. An economic downturn usually lasts six to 18 months. Interest rates usually fall during downturns to stimulate the economy by offering cheap interest rates at which money can be borrowed.