First, the definition. A depression is when you have to tighten your own belt. And a panic is when you have no belt to tighten and your pants fall down. And it's even possible for the economy to be in recession while employment is still growing. Old Recessions .
Recessions come in many shapes and sizes.
Canada's last recession was in 1990-1. The shrinkage came over four quarters, mid-1990 to early 1991, and saw the economy contract by a little under four per cent. That recession hurt, but it was kinder than the 1982-3 version when the recession withered for six consecutive quarters and GDP fell by almost six per cent. Since the recession in 1990-1, Canada's economy has expanded, sometimes faster, sometimes slower. This long expansion hasn't resembled the go-go years of the 1960s or the late 1980s.