Economic instability

Definition

Economic instability refers to a condition of uncertainty and fluctuation in an economy, characterized by rapid changes in key economic indicators such as inflation, unemployment, and GDP. It often indicates a lack of stability and predictability in the overall economic system.

Related terms

Inflation: Inflation refers to the general increase in prices of goods and services over time. It erodes purchasing power and can lead to economic instability.

Unemployment: Unemployment is the state of being jobless when someone who is willing and able to work cannot find employment. High levels of unemployment can contribute to economic instability.

GDP (Gross Domestic Product): GDP is the total value of all goods and services produced within a country's borders within a specific period. Fluctuations or declines in GDP can indicate economic instability.