What is the difference between a recession and a depression?

A recession is a widespread economic decline that typically lasts between two and 18 months. A depression is a more severe downturn that lasts for years. The most famous depression in U.S. history was the Great Depression. It lasted a decade.

Are recessions a normal part of the economic cycle?

Recessions are a normal part of the economic cycle. In fact, there have been 13 recessions since World War II. What Is a Depression? While people often worry about economic depressions, they are much rarer than recessions.

What does a recession look like?

Instead, NBER defines a recession as “a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.”

Is 2020 a recession or a depression?

So while those first few months in 2020 were officially labeled a recession, if you had worried about housing and food, that time may have felt more like a depression to you. If you’re worried about a recession or depression, try not to dwell on the stock or housing markets or monetary policies, Khalfani-Cox says.