Definition of Double-dip recession:
A double-dip recession refers to a recession followed by a short-lived recovery, followed by another recession. For whatever reason, after the initial recession has passed the recovery stalls and the second round of recession sets in just as, or even before, the economy has fully recovered from the losses of the initial recession. One good indicator of a double-dip recession is when gross domestic product (GDP) growth slides back to negative after a few quarters of positive growth. A double-dip recession is also known as a W-shaped recovery. .
A second recession following a brief period of growth. A double-dip recession must come after an initial period of general economic decline. Essentially, the countrys GDP slides from negative to positive and eventually back to negative. If a country experiences a double-dip recession, the impact on the economy will be worse than the initial recession. In some cases, a double-dip recession has the ability to catapult a country into a depression.
A recession during which a period of economic decline is followed by a brief period (usually one or two quarters) of growth, followed by a further period of decline.
The causes for a double-dip recession vary but often include a slowdown in the production of goods and services that brings renewed layoffs and investment cutbacks from the previous downturn. A double-dip (or even triple-dip) is a very bad scenario or the economy, only marginally better than a sustained depression. .
How to use Double-dip recession in a sentence?
- The last double-dip recession in the United States occurred during the early 1980s.
- A double-dip recession is when a recession is followed by a short-lived recovery and another recession.
- Double-dip recessions can be caused due to a variety of reasons, and involve prolonged unemployment and low GDP.
Meaning of Double-dip recession & Double-dip recession Definition