War led energy jolt can lead the economy to recession

Subject : Economy

Section: National income

Context:

The energy market shock following Russia’s invasion of Ukraine could tip the world into an economic recession, especially if the war drags on

Concept:

When the economy contracts for two quarters in a row (or six months), this change is classified as a recession.
The term denotes a business cycle contraction, when there is a general decline in economic activity and occurs when there is a widespread drop in spending (an adverse demand shock).
When a country’s economy is healthy, it grows over time and its GDP or the value of the goods and services it produces — increases.
The last time a number of countries entered a recessive phase was when the global financial crisis broke in 2007.
A recession can become a depression if it lasts long enough, like in the late 1920s.