Business Cycle Recovery
Business Cycles are fluctuations in economic activity that occur in most modern economies. They trace out a wavelike pattern with a length of between 3.5 and 7 years. The Business Cycle Recovery phase was contributed about by both an increase in domestic investment and a revived export demand. Although this most recent recess was by no means as severe or as prolonged as the 1982 recession (GDP fell by 3.2% over 12 months in 1990-91 as compared to 6.7% over 18 months in 1982), the recovery was agonizingly slow. The recovery has been driven chiefly by increased exports and by moderate increases in retail spending.