EXPLAINED

Recessions

  • 28 November 2019
  • 1 minute

If a country’s economy has been shrinking for at least six months, that country is said to be in recession. The most recent UK recession occurred in the aftermath of the financial crisis and ended in the middle of 2009.

The usual measure of economic growth is the quarterly change in gross domestic product (GDP). Typically, changes in GDP are reported with a time lag of about three months, so many economists and investors try to second-guess how the economy is faring based on more immediate measures. In the US, for example, economists consider real incomes, employment, retail sales and industrial production as indicative of how well the economy is doing.

Read more: Gross Domestic Product

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