Difference Between Similar Terms and Objects

Difference Between Recession and Depression

recessionIn economics, recession and depression both means a slowdown in economic activity. Generally recession can be taken as a far less severe form of depression.

A widely accepted indicator of recession is, decline in GDP for two successive quarters . That is if the Gross Domestic Product of an economy declines continuously for six months, the economy is in recession. Although there is no widely-agreed-upon definition for a depression, generally a depression is distinguished from recession when GDP declines by more than 10 percent. Another yardstick for depression is a recession lasting 3 or more years.

Recession occurs more frequently than depression. Deciding whether the economy is in recession or depression is a matter of perspective.

1. Recession is a less severe form of economic downturn.
2. Recession occurs more frequently than depression.
3. When the GDP declines by more than 10% and lasts longer than 3 years, its called depression.

Please leave your comment,feedback and questions in the field below.

Latest posts by Abishek (see all)

Search DifferenceBetween.net :

Email This Post Email This Post : If you like this article or our site. Please spread the word. Share it with your friends/family.


  1. Thanks for the articles.


  3. because of the summary its easy to understand….

  4. depression is sever and long lasting process while recession is frequently happening and is for a short period.
    depression effect the whole world while recession is concerned with a specific country.

  5. I have been curious about the difference and have been searching 3 sites, then I came across yours. Your definition is much better explained. Many thanks!!

  6. Very helpful article ..a big thank you


  1. Difference between Socialism and Communism | Difference Between

Leave a Response

Please note: comment moderation is enabled and may delay your comment. There is no need to resubmit your comment.

Articles on DifferenceBetween.net are general information, and are not intended to substitute for professional advice. The information is "AS IS", "WITH ALL FAULTS". User assumes all risk of use, damage, or injury. You agree that we have no liability for any damages.

See more about : , , ,
Protected by Copyscape Plagiarism Finder