What Are the Causes of Recession in an Economy?

What Causes a Recession in an Economy?

What Are the Signs of a Recession?

FAQs About Causes of Recession

What are the stages of recession? up-arrow

Generally, there are five main stages of a recession that take place in a cyclical manner. They are

  1. Recession
  2. Trough
  3. Recovery
  4. Expansion
  5. Peak

Which areas suffer most during a recession? up-arrow

Recession in an economy causes adverse effects on three particular areas:

  1. Governance
  2. Companies
  3. Workers

How long does a recession persist? up-arrow

No one can predict how long a recession period will persist in a country's economy. However, according to economists, a recession lasts for about 10 to 12 months on average.