Recession

Personal Finance

A recession is a significant decline in economic activity lasting more than a few months, typically marked by falling GDP, rising unemployment, declining industrial production, and shrinking retail sales. The National Bureau of Economic Research (NBER) officially calls US recessions, often months after they start. Common shorthand: two consecutive quarters of negative GDP growth. The average US recession lasts about 10 months; recoveries average several years. For personal finance, recessions matter because job losses spike, asset prices fall, and credit tightens. The defenses are an emergency fund covering 6+ months, diversified investments, low debt, and recession-resistant skills.