DEFINITION of 'Growth Recession'

An expression coined by economists to describe an economy that is growing at such a slow pace that more jobs are being lost than are being added. The lack of job creation makes it "feel" as if the economy is in a recession, even though the economy is still advancing.

BREAKING DOWN 'Growth Recession'

Many economists believe that between 2002 and 2003, the United States' economy was in a growth recession. In fact, at several points over the past 25 years the U.S. economy is said to have experienced a growth recession. That is, in spite of gains in real GDP, job growth was either non-existent or was being destroyed at a faster rate than new jobs were being added.

  1. Recession

    A significant decline in activity across the economy, lasting ...
  2. Negative Growth

    Negative growth is a contraction in a country's economy as evidenced ...
  3. Economic Recovery

    An economic recovery is a period of increasing business activity ...
  4. The Great Recession

    The steep decline in economic activity during the late 2000s, ...
  5. Double-Dip Recession

    When gross domestic product (GDP) growth slides back to negative ...
  6. Rose-Colored Recession

    The unexpected optimism market observers sometimes experience ...
Related Articles
  1. Investing

    Investment Portfolio Strategy in Recession

    Do you know what to do when recession hits? Learn these recession-proof strategies that help your portfolio to endure the economic downturn.
  2. Insights

    Top 4 Things To Know About The Last Double-Dip Recession

    The financial media and investors are haunted with the prospect of a double-dip recession. We look to the past to see if a double-dip recession is in our future.
  3. Insights

    Will Your Net Worth Be Affected By A Recession?

    Here's a look at how a potential recession could impact your net worth in a negative way.
  4. Insights

    Economists Seriously Can't Forecast Recessions

    In the month of April before a recession, economists' growth predictions for the following year have been off by 200% on average. Why even try?
  5. Insights

    Recessions and Depressions Aren't So Bad

    Downturns like depressions and recessions are a natural part of the economic cycle and can actually provide some benefits.
  6. Insights

    Jobless Recovery: The New Normal Since 1990

    Just because the economy rebounds from a recession does not mean the unemployment rate will follow.
  7. Insights

    Do Declining Corporate Margins Point To Recession in 2016?

    Learn how declining profit margins have foretold nearly every recession of the past 50 years, and analyze whether they may signal economic contraction in 2016.
  8. Managing Wealth

    Top 6 Recession Investing Myths

    Find out the truth about recessions and how they impact your portfolio.
  9. Small Business

    The Impact Of Recession On Businesses

    Find out how this economic cycle affects both small and big business.
  10. Insights

    6 Factors That Point to Global Recession in 2016

    We may be on the verge of another global recession.
  1. How do financial markets react to recessions?

    Learn more about the relationship between recessions and financial markets by identifying the fundamental characteristics ... Read Answer >>
  2. When during the economic cycle should I invest in the automotive sector?

    Discover the best time to invest in the automotive sector when the economy is in a recession and interest rates have already ... Read Answer >>
  3. What causes a recession?

    A recession is a significant decline in economic activity lasting more than a few months, normally visible in real GDP, income ... Read Answer >>
  4. Do interest rates increase during a recession?

    Learn why interest rates do not rise in a recession; in fact, the opposite happens. Identify the factors that reduce interest ... Read Answer >>
  5. What is the correlation between term structure of interest rates and recessions?

    Discover the importance of the term structure of interest rates, also known as the yield curve, and its predictive power ... Read Answer >>
Hot Definitions
  1. Liquidity

    Liquidity is the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's ...
  2. Federal Funds Rate

    The federal funds rate is the interest rate at which a depository institution lends funds maintained at the Federal Reserve ...
  3. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  4. Standard Deviation

    A measure of the dispersion of a set of data from its mean, calculated as the square root of the variance. The more spread ...
  5. Entrepreneur

    An entrepreneur is an individual who founds and runs a small business and assumes all the risk and reward of the venture.
  6. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
Trading Center