A recession is when the economy takes a serious hit and things start going downhill.  It’s like a big slump where the gross domestic product (GDP), income levels, employment, and trade all go down for a while, usually a few months or more.  People and businesses start tightening their belts and spending less, which means there’s less demand for stuff like goods and services. And when demand drops, industries and production levels also go down, leading to less profit, job cuts, higher unemployment rates, and a long-lasting economic downturn. To make matters worse, people start spending less and struggling to pay off their debts. In response, the government might step in with economic policies to lower interest rates and increase government spending, among others.