Boom vs. Recession — What's the Difference?
By Tayyaba Rehman — Published on August 31, 2023
A boom is a period of rapid economic growth, while a recession denotes a period of economic decline over successive quarters.
Difference Between Boom and Recession
Table of Contents
ADVERTISEMENT
Key Differences
A boom typically represents a time of prosperity and increased production in an economy. During such periods, businesses thrive, jobs are plentiful, and the overall economic confidence is high. On the flip side, a recession is marked by a downturn in the economic activity, leading to reduced consumer spending, job losses, and declining business revenues.
In terms of duration, booms can last for varying periods, sometimes for several years, characterized by heightened economic activity. Conversely, a recession, defined technically, occurs when there are two consecutive quarters of negative GDP growth, indicating that the economy is contracting rather than expanding.
When an economy is in a boom phase, stock markets usually rise, property values increase, and there's often inflation due to the high demand for goods and services. In contrast, during a recession, stock markets might plummet, property values can decrease, and deflation can occur, meaning the general price level for goods and services drops.
Government policies during these periods also differ significantly. In times of boom, governments might opt to tighten monetary policies to prevent overheating of the economy and control inflation. In a recession, governments usually adopt expansionary policies, like tax cuts or increased public spending, to stimulate economic growth.
Comparison Chart
Definition
Period of rapid economic growth
Period of economic decline over successive quarters
ADVERTISEMENT
Duration
Can last for varying periods
Typically defined by two consecutive quarters of negative GDP growth
Economic Indicators
Rising stock markets, property values, inflation
Falling stock markets, property values, possible deflation
Job Market
Job growth and low unemployment
Job losses and rising unemployment
Government Policy
Often tightening monetary policies
Expansionary policies to stimulate growth
Compare with Definitions
Boom
A period of rapid growth or prosperity.
The tech industry experienced a boom in the early 2000s.
Recession
A period of economic decline over consecutive quarters.
Many businesses closed during the 2008 recession.
Boom
A wishbone-shaped piece of windsurfing equipment.
Recession
A withdrawal or backward movement.
The recession of the glacier has worried scientists.
Boom
To extend, or push, with a boom or pole; as, to boom out a sail; to boom off a boat.
Recession
A ceremonial procession.
The recession at the end of the graduation was slow and methodical.
Boom
To rush with violence and noise, as a ship under a press of sail, before a free wind.
She comes booming down before it.
Recession
The act of receding or withdrawing.
The recession of the tides is predictable.
Boom
To have a rapid growth in market value or in popular favor; to go on rushingly.
Recession
(economics) A period of reduced economic activity
Statisticians often define a recession as negative real GDP growth during two consecutive quarters.
Boom
A pivoted spar to which the foot of a vessel's sail is attached, allowing the angle of the sail to be changed.
Recession
A diminishing or decrease in something.
There's been a recession in traditional art forms in favor of digital mediums.
Boom
A floating beam used to contain oil spills or to form a barrier across the mouth of a harbour or river.
Recession
In economics, a recession is a business cycle contraction when there is a general decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock).
Boom
Make a loud, deep, resonant sound
Thunder boomed in the sky
Recession
A period of low temperatures that causes a reduction in species; ice age.
Boom
To make a deep, resonant sound.
Recession
A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters
The country is in the depths of a recession
Measures to pull the economy out of recession
Boom
To move or position using a crane
Boomed the cargo onto the ship.
Recession
The action of receding; motion away from an observer.
Boom
(Nautical) A spar extending usually from a mast to hold the foot, clew, or tack of a sail.
Recession
The erosion of a cliff or headland from a given point, as from the action of a waterfall.
Boom
A barrier composed of a chain of floating logs, typically used to block the passage of boats or to arrest the downstream motion of logs in a log drive.
Recession
The reduction of a glacier from a point of advancement.
Boom
A long movable arm used to maneuver and support a microphone.
Recession
The motion of celestial objects away from one another in an expanding universe.
Boom
A spar that connects the tail surfaces and the main structure of an airplane.
Recession
A significant period of economic decline from the peak to the trough of a business cycle, characterized by decreasing aggregate output and often by rising unemployment.
Boom
A long hollow tube attached to a tanker aircraft, through which fuel flows to another aircraft being refueled in flight.
Recession
The withdrawal in a line or file of participants in a ceremony, especially clerics and choir members after a church service.
Boom
To rush with violence and noise, as a ship under a press of sail, before a free wind.
Recession
The restoration of property by a grantee back to the previous owner by means of a legal conveyance.
Boom
One of the calls of certain monkeys or birds.
Recession
The act or an instance of receding or withdrawing.
Boom
(computer chess) An instance of booming.
Recession
The ceremonial filing out of clergy and/or choir at the end of a church service.
Boom
A period of prosperity, growth, progress, or high market activity.
Recession
The act of ceding something back.
Boom
The sound of a cannon firing.
Recession
(surgery) A procedure in which an extraocular muscle is detached from the globe of the eye and reattached posteriorly.
Boom
A hollow roar, as of waves or cannon; also, the hollow cry of the bittern; a booming.
Recession
The act of receding or withdrawing, as from a place, a claim, or a demand.
Mercy may rejoice upon the recessions of justice.
Boom
A strong and extensive advance, with more or less noisy excitement; - applied colloquially or humorously to market prices, the demand for stocks or commodities and to political chances of aspirants to office; as, a boom in the stock market; a boom in coffee.
Recession
A period during which economic activity, as measured by gross domestic product, declines for at least two quarters in a row in a specific country. If the decline is severe and long, such as greater than ten percent, it may be termed a depression.
Boom
A state of economic prosperity
Recession
A procession in which people leave a ceremony, such as at a religious service.
Boom
Hit hard;
He smashed a 3-run homer
Recession
The act of ceding back; restoration; repeated cession; as, the recession of conquered territory to its former sovereign.
Boom
Be the case that thunder is being heard;
Whenever it thunders, my dog crawls under the bed
Recession
The state of the economy declines; a widespread decline in the GDP and employment and trade lasting from six months to a year
Boom
A loud, deep, resonant sound
The deep boom of the bass drum
Recession
A small concavity
Boom
A period of great prosperity or rapid economic growth
The London property boom
Recession
The withdrawal of the clergy and choir from the chancel to the vestry at the end of a church service
Boom
A movable arm over a television or film set, carrying a microphone or camera
A boom mike
Recession
The act of ceding back
Boom
Experience a period of great prosperity or rapid economic growth
Business is booming
Recession
The act of becoming more distant
Boom
To grow, develop, or progress rapidly; flourish
Business is booming.
Boom
To utter or give forth with a deep, resonant sound
A field commander booming out orders.
Boom
To cause to grow or flourish; boost.
Boom
A deep resonant sound, as of an explosion.
Boom
A time of economic prosperity.
Boom
A sudden increase, as in popularity.
Boom
A long pole extending upward at an angle from the mast of a derrick to support or guide objects being lifted or suspended.
Boom
A floating barrier serving to catch debris or to contain an oil spill.
Boom
To make a loud, hollow, resonant sound.
Thunder boomed in the distance and lightning flashes lit up the horizon.
The cannon boomed, recoiled, and spewed a heavy smoke cloud.
Beneath the cliff, the sea was booming on the rocks.
I can hear the organ slowly booming from the chapel.
Boom
To exclaim with force, to shout, to thunder.
Boom
Of a Eurasian bittern, to make its deep, resonant territorial vocalisation.
Boom
(transitive) To make something boom.
Men in grey robes slowly boom the drums of death.
Boom
(aviation) To subject to a sonic boom.
Boom
To publicly praise.
Boom
(computer chess) To rapidly adjust the evaluation of a position away from zero, indicating a likely win or loss.
Boom
(usually with "up" or "down") To raise or lower with a crane boom.
Boom
(intransitive) To flourish, grow, or progress.
The population boomed in recent years.
Business was booming.
Boom
To cause to advance rapidly in price.
To boom railroad or mining shares
Boom
A low-pitched, resonant sound, such as of an explosion.
The boom of the surf.
Boom
A rapid expansion or increase.
You should prepare for the coming boom in the tech industry.
Boom
(aviation) sonic boom
Boom
(nautical) A spar extending the foot of a sail; a spar rigged outboard from a ship's side to which boats are secured in harbour.
Boom
A movable pole used to support a microphone or camera.
Boom
(by extension) A microphone supported on such a pole.
Boom
A horizontal member of a crane or derrick, used for lifting.
Boom
(electronics) The longest element of a Yagi antenna, on which the other, smaller ones are transversally mounted.
Boom
A floating barrier used to obstruct navigation, for military or other purposes; or used for the containment of an oil spill or to control the flow of logs from logging operations.
Boom
The section of the arm on a backhoe closest to the tractor.
Boom
A gymnastics apparatus similar to a balance beam.
Boom
Used to suggest the sound of an explosion.
Crash boom bang
Boom
Used to suggest something happening suddenly and unexpectedly.
Boom
The sound of a bass drum beating.
Boom
A long pole or spar, run out for the purpose of extending the bottom of a particular sail; as, the jib boom, the studding-sail boom, etc.
Boom
A long spar or beam, projecting from the mast of a derrick, from the outer end of which the body to be lifted is suspended.
Boom
A pole with a conspicuous top, set up to mark the channel in a river or harbor.
Boom
A strong chain cable, or line of spars bound together, extended across a river or the mouth of a harbor, to obstruct navigation or passage.
Boom
A line of connected floating timbers stretched across a river, or inclosing an area of water, to keep saw logs, etc., from floating away.
Boom
To cry with a hollow note; to make a hollow sound, as the bittern, and some insects.
At eve the beetle boomethAthwart the thicket lone.
Boom
To make a hollow sound, as of waves or cannon.
Alarm guns booming through the night air.
Boom
To cause to advance rapidly in price; as, to boom railroad or mining shares; to create a "boom" for; as to boom Mr. C. for senator.
Boom
A deep prolonged loud noise
Boom
A sudden happening that brings good fortune (as a sudden opportunity to make money);
The demand for testing has created a boom for those unregulated laboratories where boxes of specimen jars are processed lik an assembly line
Boom
A pole carrying an overhead microphone projected over a film or tv set
Boom
Any of various more-or-less horizontal spars or poles used to extend the foot of a sail or for handling cargo or in mooring
Boom
Make a resonant sound, like artillery;
His deep voice boomed through the hall
Boom
Make a deep hollow sound;
Her voice booms out the words of the song
Boom
Grow stronger;
The economy was booming
Boom
A sudden increase in popularity or trend.
There was a boom in vegan products last year.
Boom
To extend, or push, with a boom or pole.
To boom out a sail
To boom off a boat
Boom
A loud, deep, resonant sound.
The boom of the fireworks startled the baby.
Boom
A movable arm holding a microphone or camera.
The director motioned for the boom to be lowered during the scene.
Boom
A spar extending from a mast to hold the foot of a sail.
The sailor secured the sail to the boom.
Common Curiosities
What signifies a boom in an economy?
A boom is marked by rapid economic growth, increased production, and high consumer confidence.
Can a boom lead to inflation?
Yes, during a boom, high demand for goods and services can lead to inflation.
Is it possible to predict when a boom will end?
While indicators can provide hints, it's challenging to precisely predict the end of a boom.
What industries typically thrive during a boom?
It depends on the nature of the boom, but sectors like real estate, technology, and consumer goods often prosper.
How is a recession technically defined?
A recession occurs when there are two consecutive quarters of negative GDP growth.
Can stock markets give an indication of an impending recession?
Falling stock markets can be an indicator, but they are not the sole predictor of a recession.
What happens to jobs during a recession?
During a recession, there are typically job losses and rising unemployment.
How do governments typically respond to a boom?
Governments might tighten monetary policies during a boom to prevent overheating and control inflation.
Are there any positive aspects of a recession?
While challenging, recessions can lead to market corrections, encourage innovation, and create opportunities for new businesses.
Are recessions always long-lasting?
No, the duration of recessions can vary; some are short-lived while others can be prolonged.
Share Your Discovery
Previous Comparison
Against vs. For
Next Comparison
Power vs. AuthorityAuthor Spotlight
Written by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
