How many recessions since 1950

The chronology identifies the dates of peaks and troughs that frame economic recessions and expansions. A recession is the period between a peak of economic activity and its subsequent trough, or lowest point.

Between trough and peak, the economy is in an expansion. Expansion is the normal state of the economy; most recessions are brief. However, the time that it takes for the economy to return to its previous peak level of activity or its previous trend path may be quite extended.

The most recent trough occurred in April The NBER's definition emphasizes that a recession involves a significant decline in economic activity that is spread across the economy and lasts more than a few months. In our interpretation of this definition, we treat the three criteria—depth, diffusion, and duration—as somewhat interchangeable.

In April , the U. It remained in the double digits until August. Although the economy grew The subprime mortgage crisis triggered a global bank credit crisis in By , the damage had spread to the general economy through the widespread use of derivatives. GDP in shrank in three quarters, including an 8. The recession ended in Q3 , when GDP turned positive, thanks to an economic stimulus package. The recession lasted eight months, from March to November.

It was caused by a boom and subsequent bust in dot-com businesses. The Y2K scare had partially created the boom in Companies bought billions of dollars worth of new software, because they were afraid the old systems weren't designed to transition from the s to the s. Many dot-com businesses were significantly overvalued and failed.

The economy contracted in two quarters: Q1 by Unemployment continued rising until it peaked at 6. There were 12 recessions in the 20th century. The Great Depression was technically two of the nation's worst recessions back-to-back. This recession ran for nine months, from July to March It was caused by the savings and loan crisis , higher interest rates, and Iraq's invasion of Kuwait. GDP was Unemployment peaked at 7. The economy suffered a double whammy of two recessions in this period.

There was one during the first six months of The second lasted 16 months, from July to November The Fed caused this recession by raising interest rates to combat inflation. That reduced business spending. The Iranian oil embargo aggravated economic conditions by reducing U. GDP was negative for six of the 12 quarters. The worst was Q2 at Unemployment rose to This recession lasted 16 months, from November to March The OPEC oil embargo is blamed for quadrupling oil prices, but actions taken by President Richard Nixon also contributed to the recession.

First, Nixon instituted wage-price controls. They kept prices too high, reducing demand. Wage controls made salaries too high and forced businesses to lay off workers. For you. World globe An icon of the world globe, indicating different international options. Get the Insider App. Click here to learn more. A leading-edge research firm focused on digital transformation. Good Subscriber Account active since Shortcuts.

Account icon An icon in the shape of a person's head and shoulders. It often indicates a user profile. Log out. GDP fell by 3. As a result consumer prices also continued to rise, which led to a decline in spending. Meanwhile, a global recession which also happened to coincide with the Asian flu pandemic that killed 1. The Dwight Eisenhower Administration acted aggressively to spur an economic rebound, including increasing government spending on construction projects and putting more money into the nation's interstate system after previously passing the landmark Federal Aid Highway Act in As with previous post-war recessions, this downturn was spurred by a shift in government spending after the end of the Korean War which lasted from to The country's GDP dropped by 2.

Federal Reserve tightened monetary policy to curb inflation which includes increasing interest rates. However, spiking interest rates hurt consumer confidence in the economy and decreased consumer demand. The Fed eased its policies in , allowing the economy to rebound after a month recession. After the war there was an eight-month recession see below , but the economic challenges stemming from the end of World War II again caught up with the U.

Economists also point to a decline in fixed investments, while the influx of veterans returning from war and competing for limited civilian jobs helped the unemployment rate climb as high as 7. Bureau of Labor Statistics. The recession lasted only eight months as the country shifted manufacturing priorities, though, and the unemployment rate topped out at just 1. A year later, Congress passed the Employment Act of , which put responsibility on the federal government to maintain stable levels of employment and price inflation.

This recession was essentially a month pause in the nation's recovery from the Great Depression and modern economists have called the episode a " cautionary tale.