Glossary

A recession is a period of significant economic decline, typically characterised by a decrease in business activity, falling GDP, and rising unemployment for at least two consecutive quarters.

Recessions are generally caused by a combination of factors, such as high inflation, reduced consumer confidence, and financial crises. 📉

For example, the global financial crisis in 2008 led to a severe recession in the UK, with a sharp decline in GDP, a rise in unemployment, and negative growth lasting for six consecutive quarters.

Fun fact: Recessions can sometimes be followed by periods of rapid economic growth, known as "V-shaped" recoveries, as the economy bounces back from the downturn. However, other times, recoveries can be more gradual, like a "U-shaped" recovery, or even sluggish, like an "L-shaped" recovery. 📈🔍