Slowdown, Recession and Depression

Slowdown

A situation in which GDP growth slows or declines is known as Slowdown. For example, if GDP goes from 5% growth to 3% growth, an economy is experiencing a slowdown. Most analysts do not consider a slowdown to be a recession, but unemployment may rise and productivity may decline.

The economy can be in slowdown if the GDP growth rate is declining, still positive but it is not as much as previous.

Recession

A recession refers to a significant decline in general economic activity in a designated region. It had been typically recognized as two consecutive quarters of economic decline, as reflected by the negative growth rate of GDP with a continuous increase in unemployment. Thus, for the economy to be in a recession it has to show two-quarters of the negative growth rate of GDP.

Slowdown VS Recession

1. The economy can be in slowdown if the growth rate is declining. Whereas, the economy to be in a recession has to show two-quarters of the negative growth of GDP.
2. GDP growth may still positive but it is not as much as previous in case of a slowdown but GDP growth rate should be necessarily negative for at least 6 months continued. 

Depression

Depression is a severe and prolonged downturn in economic activity. In economics, a depression is an extreme recession that lasts three or more years or that leads to a decline in real GDP of at least 10% in a given year. Depressions are relatively less frequent than a milder recession and tend to be accomplished by high unemployment and low inflation.