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It's still a recession until it hits 'zero' again, even if there is solid growth? E.g. if a country started with a GDP of 100, dropped to 10 in a single year,
by corin_ 11y ago
It's still a recession until it hits 'zero' again, even if there is solid growth?
E.g. if a country started with a GDP of 100, dropped to 10 in a single year, and then over the next 90 years grew its GDP by 1 each year, it would be 90 years of economic growth but still a recession?
- mikeyouse 11y agoTechnically the recession is only when GDP drops for at least two consecutive quarters, what follows is the recovery phase. It's just common phrasing to call the whole period the recession or depression. In your example, there'd be a 1-year recession with a 90-year recovery.