Definition Of Depression In Economy

An economic depression is an occurrence wherein an economy is in a state of financial turmoil often the result of a period of negative activity based on the country s gross domestic product gdp rate.

Definition of depression in economy. Economic depressions are characterized by their length by abnormally large increases in unemployment falls in the availability of credit often due to. An economic depression is a severe downturn that lasts several years. A depression on the other hand is an extreme. 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.

Economic depression is a sustained long term downturn in economic activity in one or more economies. The decline in the gross domestic product growth rate was bigger than anything experienced since then. A recession is a normal part of the business cycle that generally occurs when gdp contracts for at least two quarters.