What term is used for a weakening of economic conditions or a downturn?

The term "recession" refers specifically to a significant decline in economic activity across the economy that lasts for an extended period, typically identified by a fall in gross domestic product (GDP) for two consecutive quarters. During a recession, various economic indicators such as employment rates, retail sales, and industrial production usually decline. This downturn reflects an overall weakening of economic conditions, with businesses experiencing reduced demand for goods and services, leading to cutbacks in spending, investment, and, ultimately, employment.

In contrast, inflation refers to the general increase in prices and the fall in the purchasing value of money. It is not a description of economic decline but rather indicates rising prices in an economy. "Monetary slowdown" is not a commonly used term in economic discussions to indicate a downturn, as it lacks the specificity of terms like recession. An "economic depression" describes a more severe and prolonged downturn in economic activity than a recession, characterized by exceptionally high unemployment and a significant reduction in consumer spending and investment. Therefore, while both recession and depression indicate negative economic conditions, recession is the more precise term for a typical economic downturn.