An economic recession is a significant decline in economic activity that lasts for an extended period, typically visible in various indicators such as GDP, employment, and consumer spending. It often occurs when there is a decrease in demand for goods and services, leading to reduced production and job losses. During a recession, businesses may struggle to maintain profits, resulting in layoffs and higher unemployment rates. Governments may respond with measures like stimulus packages or interest rate cuts to encourage spending and investment, aiming to revive the economy and restore growth.