What does recession mean?
A recession most commonly refers to a substantial decline in economic activity lasting for a sustained period. In everyday use, it may indicate falling demand, reduced production, business closures, rising unemployment, and weaker consumer spending, although the technical criteria for declaring one vary among economic authorities. The word can also describe something retreating or moving backward, such as water receding from a shore, though this older and less common sense is usually literary. In the economic sense, recession carries a strongly negative connotation because it brings financial hardship to businesses, workers, and households. It is often distinguished from a depression, which generally denotes a more severe and prolonged downturn. The word is also commonly used with terms such as “economic,” “global,” and “financial,” or in constructions such as “in recession” and “come out of recession.” Its origin in the idea of withdrawal makes it a useful example of how a general physical concept has become closely associated with modern economic conditions.
nounA period of significant decline in economic activity, especially one lasting several months or longer. More generally, it means an act of withdrawal, retreat, or movement backward.
- A period of significant decline in economic activity.
- An act of withdrawal, retreat, or movement backward.
"Small businesses struggled as the country slipped into recession."
"The economy entered a recession after demand fell sharply."
"The recession of the river left exposed stones along the bank."
Used for separate periods of economic decline or, less commonly, separate acts of retreat or withdrawal.
"The country has experienced several recessions since the war."
Long before recession became an economic alarm, the word simply meant a withdrawal or movement backward.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does recession come from?
The word comes from Latin recessio, meaning “a going back” or “withdrawal.” It was formed from recessus, the past participle of recedere, “to go back,” which combines re-, meaning “back,” with cedere, “to go” or “yield.” English initially used the word for withdrawal or retreat, and the economic sense developed later as a metaphor for a contraction in commercial activity.
How recession is actually used
The economic sense is formal but widely used in journalism, business, and everyday conversation. Outside economics, the word is more literary and denotes a backward movement or withdrawal.
Easily confused with recession
A recession is a period of substantial economic contraction, whereas a depression is a more severe and prolonged downturn that may include major bankruptcies and widespread unemployment.