Definition of Global recession:
A period of general economic decline that has reached global proportions. The financial crisis in the United States in 2008 sparked a global recession that lasted into 2009..
A global recession is an extended period of economic decline around the world. The International Monetary Fund (IMF) uses a broad set of criteria to identify global recessions, including a decrease in per-capita gross domestic product (GDP) worldwide. According to the IMF’s definition, this drop in global output must coincide with a weakening of other macroeconomic indicators, like trade, capital flows, and employment.
It’s important to note macroeconomic indicators have to wane for a significant period of time to classify as a recession. In the United States, it’s generally accepted that GDP must drop for two consecutive quarters for a true recession to take place. However, the IMF does not specify a minimum length of time when examining global recessions.
How to use Global recession in a sentence?
- The IMF uses purchasing power parity to analyze the scale and impact of global recessions.
- A global recession is an extended period of economic decline around the world.
- The effect of a global recession on individual economies varies based on several factors.
Meaning of Global recession & Global recession Definition