A recession is a significant decline in activity across the economy with a duration of more than a few months.
A recession can be seen in industrial production, employment, real income, and wholesale and retail trade.
According to the traditional economic school, the technical indicator of a recession is given by two consecutive quarters of negative economic growth measured by Gross Domestic Product.
The recession is a normal, albeit unpleasant, phase of the business cycle. However, even sudden risk events can often trigger the onset of a recession. The global recession of 2007-2009 was caused by the risky investment strategies used by the world’s large financial institutions and a sick financial system. As a result of the great world recession, the economies of almost all developed nations and developing countries have experienced major collapses.