I’m Mary Walden with economist MW welcoming you to the economic perspective. Today’s program looks at the definition of a recession. Mike, you do about 75 talks each year around the state. I imagine today you’re getting many questions about the possibility of a near-term recession. But what really is the meaning of a recession?
- Means economy is going in reverse
- Fewer jobs, less selling, lower incomes and profits
- Strict definition is the reversal must occur for two consecutive quarters
- Actually, had a reversal in 2015, but only lasted for one quarter, so not an official recession
- Recession is different than an economic slowdown
- Slowdown means still improving, but at a slower rate
- Most economists think we are now in a slowdown, not a recession
- But slowdowns can ultimately become recessions
- I’m MW
And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.