Recession is described as a period of reduced economic activity of a
certain country followed by a decline in general economic climate
(decline in real income, increase in unemployment, low production
capacity infill...). Recession is less severe than depression. It
repeats in cycles every couple of years, usually beginning in one
country and requires a period of several months or quarters to transfer
to other countries.
There are three basic predictors: duration, depth and diffusion.
Consumers respond to recession by changing their shopping habits, they
spend more carefully and for a competitive marketing activity during
economic recession a business subject needs to take all three predictors
into consideration.
Definition courtesy of
Limun
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