🐵 What does a recession really mean?

Photo from Time

we all know it’s bad when we hear the word “recession” all the time… 👎

but we just look at our stocks go down and say “yeah… the recession am i right”

yes, well, kinda, but not quite…

📖 the definition:

• typically, it’s officially a recession when GDP falls for two consecutive quarters – because this straight up means reduced economic activity, trade, industrial activity, etc.

  • quick formula: GDP = Consumption + Investment + Gov't Spending + (Exports - Imports)

• more strictly though, NBER (National Bureau of Economic Research) are the ones that officially declare a recession and their definition is:

  • “significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales”

  • (so a lil’ different but you get the picture…!)

🤷 so how is the US GDP doing?

i know, it's amazing. this is the fed st. louis' website and it’s giving me windows vista vibes…

as you can see above, US GDP for Q1 ‘22 fell at a 1.4% annualized rate, while most analysts expected a +1% gain.

this means that we are one quarter away from an official recession 😰

gotta go back to finishing up Jian Yang’s pitch – have a great Saturday y’all!

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this is my second post ever… please bear with me as i try to make this better in content, design, form, etc. this will be a learning experience for myself as well!

thank you for your patience, and always send me your questions or any suggestions you have with Ask a Wise Ape!