What is recession?

2008 will likely be known as the global economy's worst year in decades. What began as a modest U.S. economic downturn accelerated into a full-blown credit and financial crisis that spread around the world. Aggressive intervention by governments and central banks failed to reassure reeling financial markets, ease tight credit, or stave off what is expected to be a protracted global recession.

But, what is recession?

Recession is defined as a period of reduced economic activity, a business cycle contraction.

The U.S.-based National Bureau of Economic Research (NBER) defines economic recession as:

"a significant decline in [the] economic activity spread across the economy, lasting more than a few months, normally visible in real GDP growth, real personal income, employment (non-farm payrolls), industrial production, and wholesale-retail sales.”

Read more about Recession and how government deals with it. Click here

Watch a Video: The Year the Global Economy Tanked