General TradingD

Depression

A depression is a severe and prolonged downturn in economic activity, more extreme and lasting than a recession. It is typically characterized by a significant decline in GDP, high unemployment, deflation, reduced credit availability, and a collapse in consumer confidence and spending.

Example

“The Great Depression of the 1930s saw US GDP decline by roughly 30% and unemployment peak near 25%, with effects felt globally for over a decade.”