A recession in 2025 is a hypothetical economic downturn that some experts believe could occur due to various factors such as rising inflation, geopolitical uncertainty, and a potential housing market correction. A recession is a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.
Recessions can have significant impacts on individuals, businesses, and the overall economy. During a recession, unemployment rates tend to rise as businesses reduce their workforces, and consumer spending often declines due to reduced income and uncertainty about the future. However, recessions can also create opportunities for businesses that are able to adapt and innovate, and they can lead to long-term economic growth once the downturn has passed.