Recession refers to an economic downturn that persists for at least two consecutive quarters. Its symptoms are manifested through reduced GDP, lesser employment, and falling incomes. Unlike a recession, which typically only lasts for two or three months, depression is a much more severe and long-lasting economic decline. This type of recession involves, at least, a 10 percent fall in the GDP and a high unemployment level.
The following table summarizes the key differences between a recession and a depression:
| Characteristic | Recession | Depression |
| Severity | Less severe | More severe |
| Duration | Shorter | Longer |
| Impact on GDP | Decline of at least 2 consecutive quarters | Decline of 10% or more |
| Impact on employment | Moderate increase in unemployment | High unemployment |
| Impact on income | Moderate decrease in income | Significant decrease in income |
Here are some examples of recessions and depressions:
Recessions: These include the Great Recession in 2008-2009, the Dot-com Bubble Recession that happened in 2001, and the Oil Crisis Recession that took place in 1973-1975.Depressions: A look at the Great Depression of the 1930s and the Long Depression of the 19th century.
