Definition Of Depression Financial

During the great depression for example gdp in the united states dropped 12 between 1929 and 1930 and a further 16 the following year.

Definition of depression financial. A depression is a severe and prolonged downturn in economic activity. The 10 year great depression was the world s only depression. It is a more severe economic downturn than a recession which is a slowdown in economic activity over the course of a normal business cycle. While financial depression and debt stress may make you want to permanently log out of your online banking and simply hope for the best each time you swipe your debit card the reality is that taking stock of your situation in order to get yourself back on track can be a great first step towards tackling overwhelming debt.

An economic depression is an extremely severe long term contraction in economic activity. While there is no technical definition of a depression conventionally it is defined as a period featuring severe declines in productivity and investment and particularly high unemployment. In economics a depression is commonly defined as an extreme recession that lasts three or more years or which leads to a. October 2012 learn how and when to remove this template message in economics a depression is a sustained long term downturn in economic activity in one or more economies.