What’s a technical recession?

What’s a technical recession? 

A TECHNICAL recession is defined as two consecutive quarters in which the economy has shrunk compared to the previous quarter.
The size of the economy is measured in terms of the total value of goods and services produced in a country, also known as its gross domestic product, or GDP.

Generally, the duration of a recession is the full period of the business cycle that economic activity is in decline.

There is no universally accepted way to measure a ‘real’ recession. Some suggest a full-year economic contraction or two consecutive quarters of the economy shrinking compared to the same period in the previous year.

Singapore’s last ‘full-scale’ recession was in 2001, when the economy shrank 2.4 per cent during the year after the bursting of the dot.com bubble.

Source : Straits Times - 11 Oct 2008

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