An economic recession is a period of significant decline in economic activity, characterized by reduced GDP growth, rising unemployment, and falling consumer demand. In the global economy, recessions can spread across countries due to interconnected trade and financial systems. A recession in major economies reduces global trade, investment flows, and commodity prices. Developing countries often face capital outflows and reduced export demand. Governments and central banks respond through fiscal stimulus and monetary easing to revive growth. Repeated global recessions highlight the importance of economic resilience and coordinated international policy responses.