What causes a country to enter a technical recession?

A country enters a technical recession when its economy slows down for two quarters in a row, like when your favorite toy store has fewer customers every week.

Imagine you and your friends are running a lemonade stand. If you sell 10 cups of lemonade each day, but then one week you only sell 7, and the next week you only sell 6, that’s like a recession for your little business. Your profits go down, and it might be harder to buy new lemons or fun stickers.

Sometimes, people stop buying lemonade because they're saving money for something else, like a new bike or ice cream. That’s what happens in a country, if fewer people are spending on things like food, cars, or clothes, it can make the whole economy feel slower.

A technical recession doesn’t mean everything is bad forever. It just means your lemonade stand (or the whole country) is taking a little break, maybe two months of slow sales, and then things could get better again!