Definitions
- Describing a period of economic decline or slowdown. - Referring to a temporary decrease in economic activity, typically lasting for a few months. - Talking about a contraction in the economy characterized by a decline in GDP, employment, and trade.
- Describing a severe and prolonged economic downturn. - Referring to a long-lasting period of low economic activity, typically lasting for years. - Talking about a contraction in the economy characterized by a significant decline in GDP, employment, and trade.
List of Similarities
- 1Both refer to periods of economic decline.
- 2Both involve a decrease in economic activity.
- 3Both can lead to job losses and financial hardship.
- 4Both can be caused by various factors such as a financial crisis, natural disasters, or pandemics.
What is the difference?
- 1Severity: Recession is less severe than depression.
- 2Duration: Recession is shorter than depression.
- 3Impact: Depression has a more significant impact on the economy and society than recession.
- 4Recovery: Recession is easier to recover from than depression.
- 5Scope: Depression is a more widespread and global phenomenon than recession.
Remember this!
Recession and depression are both terms used to describe periods of economic decline. However, recession is a milder and shorter-term economic downturn, while depression is a more severe and prolonged economic crisis that can have a significant impact on the economy and society. The difference between the two lies in their severity, duration, impact, recovery, and scope.
