Forex Dictionary Terms


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Definition – What does Recession mean?

A recession is a prolonged decline in the economic health of a nation. The general criteria for recession is declining or negative GDP growth for two or more consecutive quarters.

ForexTerms explains Recession

A recession is bad news for the country experiencing it. Usually, the economic pressures of a recession prompt the government of the nation to print money or otherwise damage the value of the currency. That said, recessions are not always a direct correlation with a declining currency. If the recession is global, currencies often advance and decline based on the perception of how bad the recession is compared to other nations – not just the issuing nation’s health.

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