A decline in the gross domestic product (GDP) must last for at least how many quarters to be considered a recession?

A decline in the gross domestic product (GDP) lasting for at least two consecutive quarters is widely recognized as the definition of a recession. This benchmark is used to assess the overall economic health of a country, indicating that the economy is contracting rather than growing. The rationale behind this specific timeframe is that a single quarter of decline may not fully represent a trend due to potential fluctuations or temporary downturns in the economy. Therefore, two consecutive quarters provide a more reliable indication that a significant downturn is occurring, marking a cycle of reduced economic activity. This criterion is consistently referenced by economists and organizations, such as the National Bureau of Economic Research (NBER), which formalizes the identification of recessions.