---
title: "What is the difference between a recession and a depression?"  
description: "What is the difference between a recession and a depression?"  
author: "Baishakhi Ghosh"  
published: 2023-10-12  
updated: 2023-10-15  
canonical: https://answers.mindstick.com/qa/103161/what-is-the-difference-between-a-recession-and-a-depression  
category: "economy"  
tags: ["economy"]  
reading_time: 2 minutes  

---

# What is the difference between a recession and a depression?



## Answers

### Answer by Saumya Mishra

**Recession refers to an** **economic** **downturn that persists for at least two consecutive quarters. Its [symptoms](https://www.mindstick.com/blog/300781/sore-throat-symptoms-and-causes) are manifested through reduced GDP, lesser [employment](https://www.mindstick.com/blog/12175/improve-your-employability-skills-by-writing-law-dissertations), 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](https://www.mindstick.com/news/2304/as-demand-declines-apple-reduces-new-iphone-production-by-3-million-units). This type of recession involves, at least, a 10 percent fall in the GDP and a high unemployment level.**

The following [table](https://www.mindstick.com/articles/43918/how-to-design-table-using-bootstrap) summarizes the key [differences](https://www.mindstick.com/blog/300750/what-is-the-link-between-resting-metabolic-rate-and-basal-metabolic-rate) between a recession and a depression:

| **Characteristic** | **Recession** | **Depression** |
| --- | --- | --- |
| Severity | Less severe | More severe |
| Duration | Shorter | Longer |
| [Impact](https://www.mindstick.com/articles/44109/the-importance-of-b2b-marketers-and-their-impact-on-the-company) on GDP | Decline of at least 2 consecutive quarters | Decline of 10% or more |
| Impact on employment | Moderate [increase](https://www.mindstick.com/news/2333/mahindra-s-q4-profit-increased-by-46-as-vehicle-sales-increased-by-75) 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](https://www.mindstick.com/articles/65176/umc-engineering-to-search-for-ocean-oil-fields-at-west-siberia) 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.


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Original Source: https://answers.mindstick.com/qa/103161/what-is-the-difference-between-a-recession-and-a-depression

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