Depression

Definition

Depression refers to a severe and prolonged economic downturn characterized by high unemployment, low production, and a decline in overall economic activity. It is often marked by falling prices, reduced consumer spending, and business failures.

Related terms

Recession: A recession is a period of temporary economic decline with reduced production and employment but not as severe or long-lasting as a depression.

Great Depression: The Great Depression was the most severe economic depression in modern history, lasting from 1929 to the late 1930s. It had widespread effects on economies worldwide.

Economic Recovery: Economic recovery refers to the period following a recession or depression when there is an improvement in economic indicators such as GDP growth, employment rates, and consumer confidence.