Recession is somewhat similar to the phase of ‘depression’ — we may call it a mild form of depression — fatal for economies as this may lead to depression if not handled with care and in time.  

• The financial crises which followed the US ‘sub-prime crisis’s in almost the whole Euro-American economies has basically brought in ‘severe recessionary’ trends there.  

Major traits of recession, to a great extent, are similar to that of depression – ‘may be summed up as follows: 

• There is a general fall in demand as economic activities take a downturn; 
• Inflation remains lower or/and shows further signs of falling down; 
• employment rate falls/unemployment rate grows; 
• Industries resort to ‘price cuts’ to sustain their business. 

Source: TMH Ramesh singh