Historically, it has taken six to 21 months from the actual start of a recession to the formal declaration. A slowdown is defined as deceleration of economy which has overheated, the growth rate still remaining positive albeit at a lower level. Some economists claim that an economy enters into a depression if and when the fall in GDP is more than 10%, and if it continues for more than 2-3 years. over a certain period of time. Key difference: The economy enters into a recession when there is a general slowdown in economic activity. Difference between definition of recession and depression Definition of Recession . Look at the housing market. Chart 18 shows consumer confidence typically rolls over from an elevated level before a recession, and the latest tumble is a serious concern. ... What is the difference between recession and depression. This was the only time in the sample that an economic slowdown outlived the end of a recession. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Furthermore, a negative term spread was always followed by an economic slowdown and, except for one time, by a recession. So, the ECB reactions this week matter and lead the markets as any rate hike risk moves further away. 0 1 0. An economic cycle refers to the ups and downs in commercial activities such as investment, saving, employment, income, etc. An economic cycle refers to the ups and downs in commercial activities such as investment, saving, employment, income, etc. The difference between a slowdown and a recession matters to investors and corporations. As the ceaseless recession talk continues, the language creep continues. ... A recession is a decline in economic activity which lasts for an extended period of time. What's the difference between a recession and a slow-down? Why You Should Care About the Difference . The deterioration of the present conditions stings less than fear about the future. However, on the other side, much debate has been focused on the economic slowdown that India is currently facing. A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales. index, still look firm. In economics, recession and depression both means a slowdown in economic activity. a recession is when economic activity slows down and can only affect on industry, related industries, or spread to the entire economy. This could be the difference between a recession and a slowdown. Generally recession can be taken as a far less severe form of depression. Data takes a long time to reflect a slowdown, and growth numbers, including the monthly G.D.P. ... slowdown is about temp and recession also includes volumes. Depression is when there is continuous and drastic recession in the country's economy. This could be the difference between a recession and a slowdown. In economics, recession and depression both means a slowdown in economic activity. Chart 18 shows consumer confidence typically rolls over from an elevated level before a recession, and the latest tumble is a serious concern. over a certain period of time. Recession or Slowdown? in practise many comentators (and politicians) favour slowdown meaning we are in or bout to go into recession, we just haven't had two consecutive quarters of negative growth* “It’s so much about semantics,” Burnett said on the February 28 NBC “Today” show when host Matt Lauer asked about the difference between recession and economic slowdown.