What is the difference between a downturn, a recession and a depression?
Downturn: a short-term decline in economic activity. Recession : a significant decline in economic activity spread across the economy, lasting more than a few months. Traditional indicators include real Gross Domestic Product (GDP), real income, employment, industrial production and wholesale-retail sales. The National Bureau of Economic Research (NBER) ultimately decides whether the economy has fallen into recession. The start of a recession can only be seen in the rear-view mirror. Depression: a longer, more severe recession. It is loosely defined as an economic downturn where GDP declines dramatically, usually by more than 10%.
