What Constitutes a Recession? (Revisited)
The economy shrank 1. 5 % at an annualized pace in Q1, the first quarterly decline ( outside of the pandemic downturn ) since Q1 2014. Most investors mistakenly think that two consecutive down quarters constitutes a recession. While that is generally the case, data other than real GDP are more useful. In other words, we can enter recession this year even if the economy is still technically expanding.