Apr 11, 2025

10 Key Indicators of Recession

Saurabh Thakur

Falling GDP

If GDP falls for two quarters consecutively, its a sign of technical recession.

Source: canva

Rising Unemployment

Company layoffs increase as organisations cut costs

Source: canva

Spending Reduces

Consumer spending on luxuries items goes down due to job security

Source: canva

Decline in production

The industrial output declines as demands shrink in the market

Source: canva

Market volatility

The market fluctuates frequently due to panic among investors

Source: canva

Decline in real estate

The home sales decline due to fewer buyers and high interests

Source: canva

Drop in company’s Investments

Firms delay hiring and hesitate to expand as there lack of investments

Source: canva

Corporate profit decline

Companies earnings reduces with the reduction in demand among consumer

Source: canva

Bankruptcies

The number of companies that go bankrupt rises as they cannot maintain the operational costs

Source: canva

Interest rates hike

Rise in interest rates and loans get more expensive.

Source: canva

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