Recession

A recession means a period when the economy is shrinking or becoming weaker. In simple terms, a recession happens when businesses, consumers, jobs, and overall economic activity slow down for a meaningful period. Recessions matter because they can lead to lower company sales, job losses, weaker consumer spending, and falling confidence. During a recession, people and businesses often become more careful with money. For example, if companies sell less, they may reduce hiring or cut jobs, and consumers may spend less because they feel uncertain about the future. A recession does not mean everyone becomes poor overnight. It means the overall economy is under pressure and activity is broadly weakening.