recession
rih-SESH-un
/rɪˈseʃ.ən/
A period of temporary economic contraction during which trade and industrial activity are reduced.
Refers specifically to a widespread contraction phase in the business cycle, traditionally marked by falling GDP.
The story behind the word. In Latin, recessio described tide water stepping back from the shore or troops retreating from battle (re- back + cedere go). In 1920s America, when politicians wanted a gentler word than 'panic' or 'depression' to describe economic downturns, they politely said economic activity was merely 'receding' or in a 'recession'.
Word relationships
- downturn: 'Downturn' is an informal term for economic decline, whereas 'recession' has strict statistical criteria.
- depression: 'Depression' is a severe, prolonged economic collapse lasting years, whereas a 'recession' is shorter and less catastrophic.
- expansion: A period of sustained economic growth and rising output.
- boom: A period of rapid economic growth and widespread prosperity.
Commonly confused with
- stagnation: Stagnation means zero or flat growth, whereas recession means actual negative growth and contracting output.
Word family
- recessionary (adjective): Relating to or triggering an economic recession.
- recede (verb): To retreat or move backward from a previous point.
Collocations
- deep recession
- slide into recession
- recession risk
- recessionary pressures
Example sentences
- "Central banks cut interest rates to stimulate borrowing and prevent the slowing economy from slipping into recession." Central banking intervention (Financial Times)
- "During the severe economic recession, many companies froze hiring and reduced capital expenditures." Labor market impact
Memory hook
The economy STEPS BACK (recedes) from growth into RECESSION. Stepping back from economic progress.
When not to use
Do not use to describe a minor dip in sales for one company; a recession requires broad macroeconomic decline.
Fun facts
- President Herbert Hoover popularized the word 'depression' to sound gentle, but when that became terrifying, 1930s analysts adopted 'recession' instead!
Related words
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