Recession

noun (countable/uncountable)

/rɪˈsɛʃən/

A sustained period of declining economic activity, technically defined as two consecutive quarters of negative real GDP growth, accompanied by rising unemployment, falling consumer spending, declining industrial output, and reduced tax revenues. India technically entered a 'technical recession' in the first half of FY 2020-21 (Q1: −24.4% and Q2: −7.4% GDP growth, respectively) for the first time since Independence, driven by COVID-19 lockdowns.

✍️ Usage in a UPSC answer

India's unprecedented back-to-back quarterly contractions of −24.4% and −7.4% in GDP in FY 2020-21 marked the country's first technical recession since Independence, prompting an Atmanirbhar Bharat package exceeding Rs. 20 lakh crore in fiscal and liquidity support.

Synonyms

contractiondownturneconomic slumpnegative growthbust

Antonyms

expansionboomrecoveryupturneconomic growth

🌱 Word Family

recede (verb), recessive (adjective), recessionary (adjective), recession (noun), recessionary gap (noun phrase)

🔡 Root

Latin recessio = a going back, from recedere = to recede (re- = back + cedere = to go)

📜 Etymology

From Latin recessio (a withdrawal), the word entered economic usage in the early 20th century to describe a moderate contraction, distinguishable from the more severe 'depression.' The US National Bureau of Economic Research (NBER) formally defines a recession not only by the two-quarter rule but also by depth, breadth, and duration across multiple economic indicators. The word's Latin root — recedere, to go back — perfectly captures the reversal of economic progress.

🧠 Memory Hook

RECESS + ion: just as a school recess is a step BACK from class, a recession is the economy stepping BACK from growth. Two quarters of negative GDP = two backward steps that define a recession.

📝 Seen in UPSC Question Papers

Prelims 2017 — Budget
Prelims 2010 — Inflation

Real UPSC previous-year questions whose text uses “Recession” — proof this word earns its place on your list.

💰 Indian Economy 📖 Seen in: Indian Economy — Growth, Planning & De...

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