What causes a recession?

A recession is a macroeconomic phenomenon characterized by a decline in economic activity, such as output, employment, and income, for at least two consecutive quarters. There are several causes of a recession, including a decline in consumer or business spending, a financial crisis or credit crunch, a decrease in exports or imports, a slowdown in technological innovation or productivity growth, or a shift in economic policies, such as monetary or fiscal policy. These factors can interact and amplify each other, leading to a downward spiral of confidence, investment, and consumption, which can worsen the recession and make it more difficult to recover.

This mind map was published on 30 April 2023 and has been viewed 103 times.