A recession is an economic downturn marked by a decline in GDP, employment, investment, and consumer spending. It often leads to higher unemployment and lower consumer confidence.

Economic Shocks: Unexpected events that disrupt economic activity, like natural disasters or geopolitical conflicts.

High Inflation: Rapid price increases can erode purchasing power and reduce spending.

Financial Crises: Issues in the financial sector, such as banking crises or stock market crashes, can lead to recessions.

High Interest Rates: Central banks may raise interest rates to control inflation, which can reduce borrowing and spending.

Decline in Consumer Confidence: When consumers are worried about their financial future, they may cut back on spending, which can slow economic growth.