Negative Growth

What It Is:

In economics, negative growth usually refers to shrinking gross domestic product (GDP).

How It Works/Example:

For example, if the United States' GDP falls from $14.4 trillion to $14.1 trillion, we would say that the U.S. economy exhibited negative growth.

Why It Matters:

Negative growth is the prelude and measurement of recessions or depressions. In particular, the traditional definition of a recession is negative growth in GDP for two or more consecutive quarters.

 
 
 
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Cached on June 18, 2013, 6:57 pm