Alakäikude

Alakäikude is a Finnish term that translates to "downswing," "downturn," or "recession" in English. It refers to a period of economic decline characterized by a decrease in economic activity, often measured by a contraction in gross domestic product (GDP). This can manifest as falling production, rising unemployment, decreased consumer spending, and a decline in investment.

Economically, alakäikude can be triggered by various factors. These might include a sharp drop in demand for goods and services, financial crises leading to a tightening of credit, significant geopolitical instability, or the bursting of asset bubbles. The duration and severity of an alakäikude can vary widely, from short-term fluctuations to prolonged periods of economic hardship.

The effects of an alakäikude are typically widespread. Businesses may face reduced profits, leading to layoffs and decreased investment. Consumers often experience a decrease in purchasing power and job security, which can further dampen demand. Governments may implement fiscal and monetary policies, such as interest rate adjustments or stimulus packages, to try and mitigate the negative impacts and encourage economic recovery. The term is commonly used in Finnish economic discussions and media to describe periods of economic contraction.