Pls read this e book What is recession ? Recession is a temporary economic situation when economic activity   reduces or slow down. It is the temporary contraction of economic activity. Recession is the economic cycle when consumption or demand reduced and it adversely affects the complete economy. In simple words recession means low economic activity in the system. It is a macro economic scenario. Consumer buys less products & services , as a result demands   reduces , less demands lead to lower production, lower production reduces job opportunity, low job opportunity reduces low income, low income leads to low purchasing . This is the complete cycle. In India people are feeling about recession due to GDP growth come down to 5 % for first quarter   of 2019-2020. But only one quarter slow GDP growth cannot indicate economic slow down. We need to observe more 2 or 3 quarter . Also we have two examples of economic slow down in India. 1.In first quarter automobile s