The Key Difference Between Recession and Depression

recession vs depression
Feature	Recession	Depression
Definition	A period of temporary economic decline, typically two consecutive quarters of negative GDP growth.	A prolonged and severe downturn in economic activity lasting several years.
Duration	Usually lasts from a few months up to two years.	Lasts several years, often longer than five years.
Severity	Moderate decline in economic activity.	Severe and widespread economic collapse.
Unemployment	Rises moderately but usually manageable.	Extremely high unemployment rates.
Impact on Businesses	Reduced profits and some business closures.	Massive bankruptcies and widespread business failures.
Government Response	Monetary and fiscal stimulus often used to counteract effects.	Extensive government intervention and long-term recovery plans.
Examples	2008 Global Financial Crisis recession.	The Great Depression of the 1930s.