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What’s The Difference Between A Recession And A Slow-down?

President Bush said today that we are not in a recession, but instead we are in a slow-down. What is the economic definition of a slow-down?

10 Comments »

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    for an Economy to be in “Recession” is has to show 2 quarters of negative growth, or contraction of the GDP.. thats over 6 months figures
    an Economy can be in “slowdown” if the growth rate is declining.. the GDP growth may still positive but its not as much as previous quarters
    in practise many comentators (and politicians) favour slowdown meaning we are in or bout to go into recession, we just haven’t had two consecutive quarters of negative growth*
    *a translation: we fiddled the GDP figures so they didn’t look so bad, and we may get our asses whupped in any forthcoming election

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    I think a slow down is when the economy is not reaching its potential growth. The economy is still reaching its desired state, but at a much slower rate than what it normally would. For example, if real GDP usually grows $2 billion dollars a year, this year it may only grow to be $.5 billion…you get the idea. A recession is when the economy has gone for a complete dive. People are losing jobs, businesses shut down – everyone is miserable. A recession is a decline in economic activity which lasts for an extended period of time.
    However, I think the US is heading for a recession. Look at the housing market.

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    mirka g 4 free tibet Says:
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    Hi. Recession is manifested when the economy counts, (countability results) of the state are in negative for 2 quarters consecutive in the same year.
    At the moment we are still in positive but we stil will be better but obviously we can’t: so we are i a slow dow situation of economic.
    I’m not a native speaker so I don’t know if you really have understand what i wrote.

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    A slow down means that the rate of growth is slowing, but the economy is still growing.
    Recession means that there is negative growth, i.e. the economy is shrinking.
    It’s a bit like when you hear that the inflation rate is falling – it doesn’t mean that inflation has stopped or is negative (deflation), just that prices aren’t rising as fast as they have been.
    As to how you define growing and shrinking economies – that sometimes seems to be a little harder to define, and different countries seem to define it in different ways – i.e. if a country is sinking deeper and deeper into debt I often find it misleading to hear that the economy is growing.

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    A slowdown is when people are spending less and are being more careful with there money. So not really a bad thing just that people are feeling the finacial pinch and therefore are more careful how much they spend. A recession is when the country or area is suffering from a severe slow down so much so people end up losing there jobs and a lot of homes end up being repossessed.

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    slowdown is about temp and recession also includes volumes.
    So for example if you are an ice-cream maker slowdown for you would mean production takes longer (you work less or employ less people in winter season) or the temps of your growth are smaller then those last year.
    and recession would mean you get less orders.

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    The same as between a slump and a recession. They are such emotive words that politicians try to take the sting out as if a man/woman losing a job is better in a recession than in a slump and better in a slow down than a recession. The next one will probably be an ease off

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    also, for the USA, recession is defined as two (quarterly) consequetive negative growth rates (contractions), that is reduction of GDP.

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    Recession – the country is starting to go backwards financially
    Slow down – the country is not growing at the pace that it was financially

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    Cthulhu fhtagn! Says:
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    slowdown means slow growth, like less than 1%. Recession means negative growth (“contraction”)

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