Recession: The Economic Downturn | CodeTogetherLive

A recession is a period of economic decline, typically defined as a decline in gross domestic product (GDP) for two or more consecutive quarters. The National Bureau of Economic Research (NBER) is the official arbiter of recessions in the United States, dating back to the 1850s. According to the NBER, there have been 47 recessions in the US since 1796, with the most recent one being the COVID-19 recession in 2020. Recessions can have devastating effects on individuals, businesses, and governments, with widespread job losses, reduced consumer spending, and decreased economic output. The global economy is highly interconnected, and recessions can have a ripple effect, impacting countries and industries worldwide. For instance, the 2008 global financial crisis led to a recession that affected over 160 countries, resulting in an estimated $2 trillion in lost economic output. As the world becomes increasingly interconnected, understanding recessions and their causes is crucial for mitigating their effects and promoting economic stability.