recessio

Recessio is a term primarily used in Spanish-speaking countries to refer to a period of economic contraction. It is the equivalent of the English word "recession." A recessio is typically characterized by a significant decline in economic activity spread across the economy, lasting more than a few months. This decline is usually visible in real GDP, real income, employment, industrial production, and wholesale-retail sales. While there is no single universally agreed-upon definition of recessio, economists generally consider a period of two consecutive quarters of declining real GDP as a sign of a recessio. However, the National Bureau of Economic Research (NBER) in the United States, a widely cited authority, defines a recessio as 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." The causes of a recessio can be varied, including a drop in aggregate demand, a financial crisis, or a negative supply shock. The effects of a recessio typically include rising unemployment, decreased consumer spending, and reduced business investment. Governments and central banks often implement various policies to mitigate the impact of a recessio, such as fiscal stimulus or monetary easing.