Økonomisk nedgang

Økonomisk nedgang, or economic downturn, refers to a period in which an economy experiences a decline in GDP (Gross Domestic Product) for two consecutive quarters or more. This phase is typically characterized by reduced consumer spending, decreased business investment, rising unemployment rates, and a general contraction in economic activity. Economic downturns can be caused by a variety of factors, including high inflation, a decrease in demand, financial crises, or external shocks like a pandemic. During an economic downturn, businesses may struggle, leading to layoffs and reduced income for individuals and households. The consequences can lead to lower tax revenues for governments, prompting budget cuts and decreased public services. Recovery from an economic downturn usually involves measures such as monetary and fiscal policy adjustments, with governments and central banks implementing strategies to stimulate growth and revive the economy.