An economic recession is a period of prolonged economic decline, typically characterized by rising unemployment, decreased consumer spending, and negative trends in GDP. It is caused by a variety of factors, including global political uncertainty, market instability, or structural changes in the economy. During a recession, businesses suffer reduced productivity, slow wage growth, price deflation, and weakened demand for goods and services. The impacts of a recession are far-reaching, leading to widespread financial hardship and long-term damage to the economic health of an entire region or country.