lamaantumisesta

Lamaantuminen, or recession in English, refers to a significant, widespread, and prolonged downturn in economic activity. It is typically characterized by a decline in gross domestic product (GDP), rising unemployment, falling consumer spending, and reduced business investment. While there isn't a universally agreed-upon definition, a common rule of thumb is two consecutive quarters of negative GDP growth. However, official declarations are often made by economic bodies like the National Bureau of Economic Research in the United States, which consider a broader range of indicators.

Recessions can be triggered by various factors, including financial crises, asset bubbles bursting, sharp increases in interest rates, or significant geopolitical events. The impact of a recession can be severe, leading to job losses, reduced incomes, and a general decline in living standards. Businesses may face reduced demand, leading to production cuts and potential bankruptcies. Governments often implement fiscal and monetary policies to mitigate the effects of a recession, such as cutting interest rates or increasing government spending. The duration and severity of recessions can vary greatly, with some being short and mild, while others can be long and devastating. Understanding the causes and consequences of economic downturns is crucial for policymakers and the public alike.