Demand-side recessions have historically been more common than supply-side recessions. Most recessions are triggered by falling aggregate demand, often due to financial crises, interest rate hikes, or declines in consumer and business confidence, which result in falling output and lower prices (deflation or disinflation). In contrast, supply-side recessions—caused by disruptions such as oil price shocks, supply shortages, or black swan events like pandemics—are less frequent but do occur, usually resulting in falling output alongside rising prices (inflation/stagflation).​

Data on recent decades—particularly in major economies—show that most recessions have been driven primarily by demand shocks, especially after financial crises. Notable exceptions include the oil crises of the 1970s and recent supply-side upheavals linked to energy and pandemic-related disruptions, but overall, negative demand shocks remain the dominant cause for most historical recessions.

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