Talouslama

Talouslama, also known as an economic recession, is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales. It is a period where the economy contracts rather than grows. A recession typically begins when the economy has reached its peak and begins to decline. This downward turn continues until the economy reaches its trough, after which a recovery begins.

The duration and severity of recessions can vary greatly. Some recessions are short and mild, while others can be prolonged and severe, leading to widespread unemployment and business failures. The causes of recessions are multifaceted and can include factors such as a sharp rise in interest rates, a decline in consumer or business confidence, a decrease in demand for goods and services, or external shocks like natural disasters or geopolitical events.

During a recession, businesses may reduce production, lay off workers, and cut back on investment. Consumers may reduce their spending, leading to lower demand for goods and services. Governments and central banks often implement policies to mitigate the effects of a recession, such as lowering interest rates or increasing government spending, to stimulate economic activity and promote recovery. Identifying the precise start and end dates of a recession is often a retrospective process undertaken by economists.