Economic Crisis

An economic crisis is a significant and sudden disruption in the functioning of an economy that leads to a decline in economic activity. It typically manifests through various indicators such as high unemployment rates, falling GDP, bank failures, and reduced consumer and business confidence. Economic crises can arise from a variety of causes, including financial instability, market crashes, excessive debt levels, or external shocks such as natural disasters or geopolitical tensions. The impact of an economic crisis can be widespread, affecting individuals, businesses, and government policies, often leading to increased poverty, social unrest, and long-term structural changes in the economy. Recovery from an economic crisis may require intervention such as fiscal stimulus, monetary policy adjustments, or structural reforms to restore stability and promote growth.