Economic Crisis

Definition

An economic crisis refers to a severe downturn or disruption in an economy that leads to significant financial instability. It can be characterized by high unemployment rates, inflation, reduced production levels, declining GDP growth, and financial hardships for individuals and businesses.

Related terms

Recession: A recession is a period of temporary economic decline characterized by reduced trade activities, falling GDP growth rate for two consecutive quarters or more.

Unemployment Rate: This term refers to the percentage of the labor force that is currently unemployed but actively seeking employment.

Inflation: Inflation occurs when there is a sustained increase in the general price level of goods and services in an economy over a period of time.