majandussurutiste

Majandussurutiste, or economic downturn, refers to a significant decline in economic activity spread across the economy, lasting more than a few months. It is typically characterized by a contraction in gross domestic product (GDP), rising unemployment, and a decrease in consumer spending and business investment. While often used interchangeably with recession, a majandussurutiste can be more severe or prolonged.

Several factors can trigger a majandussurutiste. These include financial crises, such as a collapse in asset bubbles or banking failures, which can lead to a sharp reduction in credit availability. External shocks, like a sudden increase in oil prices or geopolitical instability, can also disrupt economic stability. Furthermore, a decline in aggregate demand, caused by factors such as reduced consumer confidence or a contraction in government spending, can push an economy into a downturn.

The consequences of a majandussurutiste are far-reaching. Businesses may face reduced profits, leading to layoffs and wage freezes. Individuals can experience job losses, decreased income, and a decline in their standard of living. Governments often see a decrease in tax revenues and an increase in social welfare spending, potentially leading to budget deficits. Recovering from a majandussurutiste can be a slow process, often requiring fiscal stimulus measures, monetary policy adjustments, and structural reforms to restore confidence and economic growth.