Recession: The Economic Downturn | Postpartum Doula Los Angeles

A recession is a period of economic decline, typically defined as a decline in gross domestic product (GDP) for two or more consecutive quarters. According to the National Bureau of Economic Research (NBER), the official arbiter of recessions in the United States, a recession is a significant decline in economic activity spread across the economy, lasting more than a few months. The effects of a recession can be widespread, impacting employment rates, consumer spending, and business investment. The 2008 global financial crisis, for example, led to a recession that resulted in a 5.1% decline in global GDP and a 9.5% decline in global trade. Historically, recessions have been triggered by various factors, including monetary policy changes, global events, and asset bubbles. As of 2022, the World Bank reported that the global economy was experiencing a slowdown, with a projected 2.5% growth rate, down from 3.2% in 2021, sparking concerns of a potential recession.