Recession

Recession refers to the contractive economic phase in which a downturn in the economy is recorded. According to the most common definition, a recession occurs when the economy does not grow compared to the previous quarters for two consecutive quarters or when there is a decline (declining gross domestic product). According to this definition, Japan has so far managed the longest phase without a recession (132 quarters) of all OECD countries. The longest running streak was Australia in 2017 with 102 quarters.

In the United States, the Business Cycle Dating Committee of the National Bureau of Economic Research monitors statistics on business activity, but does not always use the same metrics. Depending on the data quality, different indicators are said to be able to accurately depict the level of economic activity; in 2007/2008 in particular the employment figures collected from companies. A recession phase is determined from the upper peak to the lowest.