The nation of Forlornistan is reporting a decline in GDP for the fourth consecutive year, with no relief in sight. With unemployment at record levels and businesses failing faster than at any time in the past century, Forlornistan is likely experiencing a depression.

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An economy is in a recession if its GDP declines for 2 consecutive quarters (six months). A depression is a severe recession. Since Forlornistan GDP has shown decline for four years and other economic conditions (the unemployment rate and the number of business failures) are described as being the worst the nation has experienced in the past century, it appears that the definition of a depression is satisfied.

The Nation of Forlornistan Is Reporting a Decline in GDP