--- title: Recession Definition | Financial Recession | Real Estate description: A recession is a macroeconomic term that represents a significant and extended period of declining or stagnant economic performance in a region or country in the world. image: https://www.realized1031.com/hubfs/social-suggested-images/Realized_Glossary_Graphic.jpg --- [![Realized 1031 Exchange Marketplace](https://www.realized1031.com/hs-fs/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black.png?width=240&height=80&name=Realized-Logo-Black.png "Realized 1031 Logo") ](https://www.realized1031.com/) - Better Business Bureau Rating: **A+** - [FINRA BrokerCheck](https://brokercheck.finra.org/firm/summary/22333) - [Call](tel:1-877-797-1031) **(877) 797-1031** # Recession A recession is a macroeconomic term that represents a significant and extended period of declining or stagnant economic performance in a region or country in the world.  Investors, businesses, public entities and governments all track various indicators that can predict or signal the onset of a recession. Recessions are a normal part of a business cycle. Indicators measuring manufacturing productivity or lending surveys can signal the occurrence of a recession. There are many different theories that seek to explain what causes recessions. Broadly, structural shifts in industries such as a sudden spike in the price of oil or a widespread inability by consumers to pay debts can cause a ripple of effects across an economy that inhibit its ability to continue to grow sustainably. 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