Economic instability

Economic instability refers to fluctuations in the economy that can lead to unpredictable changes in growth, employment, and prices. This can manifest as inflation (rising prices), recession (falling economic activity), or unemployment. When an economy is unstable, businesses may hesitate to invest, consumers may cut back on spending, and governments might struggle to manage fiscal policies effectively. Such instability can result from various factors, including political turmoil, natural disasters, or financial crises, ultimately affecting people's daily lives, savings, and overall economic confidence.