freefalling economy

A freefalling economy refers to a situation where economic activity rapidly declines, characterized by falling output, rising unemployment, and decreasing consumer and business confidence. This typically results from severe shocks like financial crises, sudden drops in demand, or loss of major markets. During such times, businesses may struggle or close, jobs are lost, and consumer spending drops sharply, creating a downward spiral that’s difficult to reverse quickly. It signifies a period of significant economic distress, requiring careful intervention to restore stability and growth.