- A recession is an economic situation that arrives when the circulation of money in the economy is low for two consecutive quarters. When the circulation of money is low, it means people are not spending money in the market. When people don’t spend money, businesses face losses, which results in an economic slowdown and layoffs, which you must have already heard about in 2023.
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Recession is calculated and analyzed according to the growth in GDP, the growth in the unemployment rate, and the growth in consumer spending rate. But the most common way of measuring recession is by analyzing the monthly GDP growth data.
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So, for the task of Recession analysis, we need to have a dataset of the monthly GDP growth of a country. I found an ideal dataset for this task that is based on the monthly GDP growth rate of the United Kingdom.