Global Economic Recession Cycle

🔄 1. What is a recession?

A recession is a period of economic downturn typically characterized by:

• A decline in GDP for two consecutive quarters
• Rising unemployment
• Decreased consumer spending and business investment
• Falling corporate profits and market confidence

📉 2. Phases of the Economic Cycle

1. Expansion – GDP growth, strong job market, high spending
2. Peak – Growth slows, inflation rises
3. Recession – GDP contracts, unemployment rises
4. Trough – Economy bottoms out
5. Recovery – Output, jobs, and spending rebound

🕰️ 3. Major Global Recessions in History

📊 4. Common Causes of Recessions

• Misguided monetary policy (e.g., high interest rates)
• Asset bubbles (e.g., real estate, stocks)
• Financial or banking crises
• External shocks (e.g., war, pandemics, natural disasters)
• Decline in consumer/business confidence

⏳ 5. How Often Do Recessions Occur?

• Roughly every 7–10 years, a major global recession occurs.
• Timing depends on policy decisions, market trends, and unexpected events.