Macroeconomic Slowdown

Extracted Attributes

• Common Causes

  Financial crisis, external trade shock, adverse supply shock, bursting of an economic bubble, large-scale anthropogenic or natural disaster (e.g., a pandemic), adverse demand shock.

• Policy Responses

  Expansionary macroeconomic policies (increasing money supply, decreasing interest rates, increasing government spending, decreasing taxation).

• US/EU Definition

  A significant decline in economic activity spread across the market, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

• General Definition

  A broad decline in economic activity, often characterized by a widespread drop in spending.

• UK/Canada Definition

  Negative economic growth for two consecutive quarters.

• Key Indicators of Decline

  Real GDP, real income, employment, industrial production, wholesale-retail sales.

• Associated Risks (Recent Context)

  High cost of AI infrastructure, market bubble.

Timeline

• The IMF's April 2025 World Economic Outlook discusses policy uncertainty testing global resilience and the global economy entering a new era, implying ongoing concerns about economic slowdowns. (Source: web_search_results)

  2025-04-22

• The OECD's press release highlights shifts in the global economic outlook as trade policy uncertainty weakens growth, indicating a potential macroeconomic slowdown. (Source: web_search_results)

  2025-06-03

• The All-In Podcast discusses market instability, including a potential SaaS Industry Slowdown and AI Correction, attributing it to a broader Macroeconomic Slowdown and the disruption from Generative AI. (Source: related_documents)

  2024-05-31

Recession

In economics, a recession is a business cycle contraction that occurs when there is a period of broad decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various events, such as a financial crisis, an external trade shock, an adverse supply shock, the bursting of an economic bubble, or a large-scale anthropogenic or natural disaster (e.g. a pandemic). There is no official definition of a recession, according to the International Monetary Fund. In the United States, a recession is defined as "a significant decline in economic activity spread across the market, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales." The European Union has adopted a similar definition. In the United Kingdom and Canada, a recession is defined as negative economic growth for two consecutive quarters. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply and decreasing interest rates or increasing government spending and decreasing taxation.

Web Search Results

• What Causes a Recession? - Investopedia

  3. Don't Do This During a Recession * A recession is a trend of simultaneously slowing business and consumer activity, leading to negative growth as measured by gross domestic product (GDP) and other data, such as the unemployment rate, wage growth, and the like. * Financial, psychological, and real economic factors can cause recessions, such as supply chain disruptions or a financial crisis. ### Economic Factors of a Recession ## What Is a Recession? A recession is when economic activity turns negative for a sustained period of time, the unemployment rate rises, and consumer and business activity are cut back due to expectations of a weak growth environment ahead. 3. Don't Do This During a Recession

• The Global Economy Enters a New Era

  The Global Economy Enters a New Era [ ](https://www.imf.org/en/Blogs/Articles/2025/04/22/the-global-economy-enters-a-new-era) It also means boosting [support for domestic demand](https://www.imf.org/en/Blogs/Articles/2024/09/12/trade-balances-in-china-and-the-us-are-largely-driven-by-domestic-macro-forces) in China, and stepping up fiscal consolidation in the United States. Fiscal authorities face [starker trade-offs](https://www.imf.org/en/Blogs/Articles/2024/03/28/the-fiscal-and-financial-risks-of-a-high-debt-slow-growth-world) with high debt, low growth and rising financial costs. _—This blog is based on Chapter 1 of the April 2025 World Economic Outlook, “[Policy Uncertainty Tests Global Resilience.](https://www.imf.org/en/Publications/WEO/Issues/2025/04/22/world-economic-outlook-april-2025?cid=bl-com-SM2025-WEOEA2025001)”_ [](https://www.imf.org/en/Blogs/Articles/2025/06/03/a-united-europe-can-shape-the-global-economy) ##### [A United Europe Can Shape the Global Economy](https://www.imf.org/en/Blogs/Articles/2025/06/03/a-united-europe-can-shape-the-global-economy) [The European Union must unite to shape today’s global economy, rather than be shaped by it](https://www.imf.org/en/Blogs/Articles/2025/06/03/a-united-europe-can-shape-the-global-economy) [Stronger regional economic ties can help build resilience during a time of growing policy uncertainty](https://www.imf.org/en/Blogs/Articles/2025/04/24/asia-can-boost-economic-resilience-amid-surging-trade-tensions) [When destination countries tighten migration and refugee policies, it has economic ripple effects elsewhere](https://www.imf.org/en/Blogs/Articles/2025/04/15/migration-and-refugee-policies-steer-people-and-economies-in-new-directions) * [Global Economy](https://www.imf.org/en/Blogs/topics?topic=Economic%20growth)

• Common Causes of Economic Recession | Congress.gov

  Recessions induced by demand shocks exhibit lower output, but unlike supply shocks, they tend not to result in price increases and at times can even result in overall price level decreases (deflation).[13](https://www.congress.gov/crs-product/R47479#fn13 "Blanchard, Macroeconomics , pp. Weinstock .") To maximize the effect on aggregate demand, the government can finance these policy changes by borrowing money from the public (i.e., increasing the publicly held federal debt), referred to as deficit financing.[49](https://www.congress.gov/crs-product/R47479#fn49 "For discussion of specific policy options for countering recessions, see CRS Report R45780, Fiscal Policy Considerations for the Next Recession , by Mark P.

• Global economic outlook: slowdown amid uncertainty | EY - US

  [](https://www.ey.com/en_us/insights/strategy/global-economic-outlook#) * [Global Trade](https://www.ey.com/en_us/insights/global-trade) * [Americas Tax Policy](https://www.ey.com/en_us/tax/global-tax-disruption) [Marketing & Growth Leaders](https://www.ey.com/en_us/cmo) [Search](https://www.ey.com/en_us/insights/strategy/global-economic-outlook#) [See all results for' '](https://www.ey.com/en_us/insights/strategy/global-economic-outlook#) [See All](https://www.ey.com/en_us/insights/strategy/global-economic-outlook) * [](https://www.ey.com/en_us/insights/strategy/global-economic-outlook) [See All](https://www.ey.com/en_us/insights/strategy/global-economic-outlook) [See All](https://www.ey.com/en_us/insights/strategy/global-economic-outlook) [United States English](https://www.ey.com/en_us/insights/strategy/global-economic-outlook#) [Growth](https://www.ey.com/en_us/services/growth) * **[](https://www.ey.com/en_us/insights/strategy/global-economic-outlook)[Global GDP growth to decelerate due to trade tensions, rising bond yields and policy uncertainty](https://www.ey.com/en_us/insights/strategy/global-economic-outlook#Section1)** * **[Reshaping growth and strategy via six themes](https://www.ey.com/en_us/insights/strategy/global-economic-outlook#Section2)** * **[Economic outlook for major economies](https://www.ey.com/en_us/insights/strategy/global-economic-outlook#Section3)** * **[Two imperatives for building resilience and robustness](https://www.ey.com/en_us/insights/strategy/global-economic-outlook#Section4)** [](https://www.ey.com/en_us/insights/strategy/global-economic-outlook) [](https://www.ey.com/en_us/insights/strategy/global-economic-outlook)Global GDP growth to decelerate due to trade tensions, rising bond yields and policy uncertainty [Read more](https://www.ey.com/en_us/services/strategy/consulting) [](https://www.ey.com/en_us/insights/strategy/global-economic-outlook)Global economic outlook: reshaping growth and strategy via six themes ### [](https://www.ey.com/en_us/insights/strategy/global-economic-outlook)Economic outlook for major economies [Growth](https://www.ey.com/en_us/services/growth) Review our [cookie policy](https://www.ey.com/en_us/legal-and-privacy/cookie-policy) for more information. [Review our Cookie Policy for more information](https://www.ey.com/en_us/legal-and-privacy/cookie-policy)

• Global economic outlook shifts as trade policy uncertainty weakens ...

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