There are fears the UK could be heading for a recession after the second month in a row where official figures showed the economy is shrinking. In the UK, a recession is officially defined as 'negative economic growth for two consecutive quarters'.
In short, a recession means a general decline in economic activity - production and sales. For most people, it means a higher risk of unemployment, lower wages and an inability to secure credit or pay bills. In turn that means increased risks of homelessness, bankruptcy and deprivation.
Recessions can be caused by a number of factors - including inflation (the rate at which everything gets more expensive) running too high. A sudden economic shock - such as war or pandemic - can also start a recession.
