Recession: The Economic Downturn | Community Health

A recession is a period of economic decline, typically defined as a decline in gross domestic product (GDP) for two or more consecutive quarters. The National Bureau of Economic Research (NBER) is the official arbiter of recessions in the United States, with the most recent recession occurring in 2020 due to the COVID-19 pandemic. According to a report by the International Monetary Fund (IMF), the global economy contracted by 3.3% in 2020, with the US economy shrinking by 3.4%. The effects of a recession can be far-reaching, with widespread job losses, reduced consumer spending, and decreased economic output. Historically, recessions have been triggered by various factors, including monetary policy mistakes, asset bubbles, and external shocks. As noted by economist Nouriel Roubini, the global economy is likely to experience another recession in the near future, with the World Bank predicting a 12% chance of a global recession in 2024.