Economic Stagnation

Economic stagnation refers to a prolonged period of little or no economic growth. During stagnation, a country's economy may experience stagnant or declining output, high unemployment, and reduced consumer spending. This situation can arise from various factors, such as decreased investment by businesses, low consumer confidence, or external shocks like economic crises. Unlike a recession, which is marked by a noticeable decline, stagnation is more about sluggish growth and the inability to improve living standards over time. It often leads to challenges in addressing issues like poverty and infrastructure development.