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In the US, traditionally it has been marked by 2 consecutive quarters of declining GDP but I think the definition is moving away from that, in part because it i
by mym1990 4y ago
In the US, traditionally it has been marked by 2 consecutive quarters of declining GDP but I think the definition is moving away from that, in part because it is such a lagging indicator, and may not be representative of a lot of other factors within an economy.
Generally though we are looking for a couple month period of time in declining employment, GDP, etc...overall health of the economy.
- Izkata 4y agoThe official statement of whether we're in a recession or not comes from the National Bureau of Economic Research, and the definition has been more complicated since at least 2008: https://www.nber.org/news/business-cycle-dating-committee-announcement-january-7-2008 https://www.nber.org/news/business-cycle-dating-committee-an... > The committee places particular emphasis on two monthly measures of activity across the entire economy: (1) personal income less transfer payments, in real terms and (2) employment. In addition, we refer to two indicators with coverage primarily of manufacturing and goods: (3) industrial production and (4) the volume of sales of the manufacturing and wholesale-retail sectors adjusted for price changes. We also look at monthly estimates of real GDP such as those prepared by Macroeconomic Advisers (see http://www.macroadvisers.com http://www.macroadvisers.com). Although these indicators are the most important measures considered by the NBER in developing its business cycle chronology, there is no fixed rule about which other measures contribute information to the process.