recessionary

Recessionary is an adjective used in economics to describe conditions, pressures, or policies associated with a recession, a period of widespread and persistent decline in economic activity. The form derives from the noun recession with the suffix -ary, indicating relating to or characteristic of.

It is commonly applied to phrases such as recessionary pressures, recessionary gap, and recessionary environment. Recessionary pressures include falling demand, reduced production, rising unemployment, and tightening credit. A recessionary gap refers to the difference between actual output and potential output when demand is insufficient.

In policy discussion, recessionary conditions often motivate expansionary measures, such as fiscal stimulus or monetary easing, aimed at reducing spare capacity and restoring growth.

Limitations: The term is descriptive rather than a formal label; official determinations of recession vary by country.

Related topics include recession, macroeconomic cycle, and countercyclical policy.