Konjunkturabschwächungen

Konjunkturabschwung, also known as an economic downturn or recession, refers to a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales. This phase of the business cycle is characterized by reduced consumer spending, lower business investment, and rising unemployment. During a Konjunkturabschwung, demand for goods and services typically falls, leading businesses to cut production and lay off workers. This can create a negative feedback loop, as reduced income further dampens consumer spending. Governments and central banks often implement policies such as interest rate cuts or fiscal stimulus packages to try and mitigate the effects of a Konjunkturabschwung and encourage economic recovery. The duration and severity of these downturns can vary greatly.