Recession Law and Legal Definition

A recession is a slowdown in economic growth of an economy. It is a general business slump of somewhat less severity and shorter duration that what was referred to as "The Great Depression" of the 1930s. A rule of thumb for identifying the onset of recessions that is almost universally employed by professional economists is as follows:

If inflation-adjusted Gross Domestic Product (or, alternatively, the closely related measure called Gross National Product) declines for two successive quarters (i.e., six months in a row), a recession has begun, and when inflation-adjusted GDP subsequently rises for two consecutive quarters, the recession has ended and recovery is under way.