Economic downturn definition

An economic downturn implies a fall in real GDP. A downturn also includes that period just before a recession – with a fall in the rate of economic growth and a widening output gap. A downturn will also include a period of negative economic growth and recession. An economic downturn is part of the economic cycle (sometimes referred to as trade cycle or business cycle) This shows two major economic downturns in…

Comparing different recessions

Comparing different recessions

The post 2008 recession has seen the longest decline in real GDP on record. 55 months after the peak output of 2008, the UK economy is still 4% below it’s peak. By contrast, in the same time frame during the early 1930s, the economy had recovered to be more than 2% higher than the 1930 peak. The 2008-13 recession is longer lasting than even the great depression. Yet, curiously the 2008 recession has seen one of the least damaging rises in unemployment. Firstly, a look at the percentage change in real…