A recession is an economic downturn characterized by a decline in a country's gross domestic product (GDP) for two consecutive quarters. During a recession, businesses may experience lower sales, leading to reduced production and layoffs. This can result in higher unemployment rates and decreased consumer spending, further exacerbating the economic decline. Recessions can be caused by various factors, including high inflation, rising interest rates, or external shocks like a global pandemic. Governments and central banks often respond to recessions with measures such as lowering interest rates or implementing stimulus packages to encourage economic growth and recovery.