What is a recession? First, the textbook definition: A recession is a prolonged period of economic decline, beginning when the economy peaks and ending when it bottoms out.

Data released Thursday by the Federal Statistical Office shows Germany's gross domestic product, or GDP, declined by 0.3% in the period from January to March. This follows a drop of 0.5% in Europe.

What is a recession? In normal times, a country's economy grows. People's incomes tend to rise as the value of the goods and services the country produces - its Gross Domestic Product (GDP.

During a recession, the economy shrinks because of pullbacks in economic activity, especially consumer spending and business investment. Companies lay off workers and slow hiring, unemployment.