Double Dip Recession

Double Dip Recession

When the gross domestic product (GDP) growth slides back to negative after a quarter or two of brief positive growth. In other words, a recession followed by a short-lived recovery, followed by another recession.

Notes:

The causes for a double-dip recession vary. However, they often include a slowdown in the demand for goods and services because of layoffs and spending cutbacks from the previous downturn.

A double-dip (or even triple-dip) is a worst case scenario. Fear that the economy will move back into a deeper and longer recession makes recovery even more difficult.

See also: Bear Market, Bloodletting, Bottom, Business Cycle, Correction, Dead Cat Bounce, Falling Knife, Flight to Quality, GDP, Panic Selling, Recession