What shows that a country is experiencing a recession?
Indicators that a country is experiencing a recession. Most experts say there’s no need to panic just yet, but there are a number of datasets you may want to watch to help signal future economic shocks. They’re generally referred to as “indicators,” and they’re what experts read when trying to spot-check the health of the national economy. A recession can be defined as a sustained period of weak or negative growth in real GDP (output) that is accompanied by a significant rise in the unemployment rate. Many other indicators of economic activity are also weak during a recession. For instance, levels of household spending and investment by businesses are usually low. In addition, the numbers of households and businesses that are unable to pay back loans are unusually high, as is the number of businesses that close down. Because these indicators are typically present when there is a significant increase in the unemployment rate, the unemployment rate is considered a reliable and timely su...