User:EpsomSavant/Growth recession
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Growth recession
[edit]From Wikipedia, the free encyclopedia
Growth Recession is a term in economics that refers to a situation where economic growth is slow, but not low enough to be a technical recession, yet unemployment still increases.
Stagflation is not to be confused with a growth recession, despite featuring similar qualities. High inflation rates accompany high unemployment levels and a prolonged period of economic growth, otherwise known as stagnation. A growth recession will last for more than a quarter of the year, while stagflation can last for years as seen during the 1970s Energy Crisis when the term was coined.[1]
Growth Recession vs. Recession
[edit]The NASDAQ (National Association of Securities Dealers Automated Quotations) considers negative GDP (Gross Domestic Product) growth lasting six months or more to be a recession.[2] A growth recession will last for more than a quarter of the year, and despite the negative GDP growth and high unemployment levels, it does not last as long as an official recession and there is still economic growth. An example of this occurred between February 2020 and April 2020, when employment levels dropped to a record high unemployment rate of 14.7 percent. According to the U.S. Bureau of Labor Statistics, this is the highest unemployment rate on record since January 1948.
References
[edit]- ^ Nelson, Edward (May 24, 2022). "How Did It Happen?: The Great Inflation of the 1970s and Lessons for Today" (PDF). Washington: Board of Governors of the Federal Reserve System. Archived from the original on June 2022.
{{cite web}}: Check date values in:|archive-date=(help) - ^ "Growth Recession". NASDAQ. 2022.
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