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Recession

ri-SESH-un /rɪˈsɛʃən/

nounB2GRESATTOEFLIELTS

FormalStandard

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

While often associated with widespread hardship, a recession is a technical term defined by specific economic indicators, primarily GDP decline. It's a normal, albeit challenging, part of the business cycle.

The story behind the word. The word 'recession' comes from the Latin 'recessio,' meaning 'a going back' or 'a retreating.' It combines 're-' (back) and 'cedere' (to go). In English, it first appeared in the 17th century, but its specific economic sense, referring to a period of economic decline, became prominent in the early 20th century, particularly after the Great Depression.

Word relationships

downturn: A general term for a decline, less formal and less specific than 'recession'.
slump: Often implies a more severe or prolonged decline than a typical recession.

boom: A period of rapid economic growth and prosperity.
expansion: A phase of the business cycle characterized by increasing economic activity.

Commonly confused with

Depression: A depression is a much more severe and prolonged recession, characterized by a significant decline in economic activity, high unemployment, and deflation.

Word family

recessional (adjective): relating to a recession

Collocations

deep recession
mild recession
economic recession
enter a recession
exit a recession
avoid a recession

Example sentences

"The global financial crisis of 2008 plunged many countries into a deep and prolonged recession, leading to widespread job losses and business failures." Discussing the 2008 financial crisis.
"Economists are debating whether the current slowdown will lead to a mild recession or simply a period of slower growth." An economic forecast.

Memory hook

Think of a 're-treat' or 're-cede' – the economy is retreating or going back from its peak. Economy Retreats

When not to use

Do not use 'recession' to describe a personal financial setback or a localized industry downturn unless it's part of a broader national economic decline.

Fun facts

The term 'recession' gained widespread use to avoid the more alarming term 'depression' after the 1930s.
There is no universally agreed-upon global definition of recession; different countries and organizations use slightly varied criteria.