Economic slowdown
Also called: Growth deceleration · Topic: Economic Growth Theories and Business Cycles · NCERT: Beyond NCERT
Meaning
An economic slowdown is a fall in the rate of GDP growth while growth stays positive. The economy keeps growing, just more slowly than before. Output still rises every year. It does not shrink.
Example
India's growth slid from 8.3% in 2016-17 to 3.9% in 2019-20. The economy was still growing, so this was a slowdown, not a recession.
Don't confuse with
- Recession: in a recession, output actually declines across the economy for months. In a slowdown, growth is only slower.
- Technical recession: this means two consecutive quarters of negative real GDP growth. A slowdown has no negative growth at all.
Related concepts
- Business cycle
- Expansion
- Overheating
- Goldilocks economy
- Peak
- Trough
- Recovery
- Soft landing
- Growth recession
- Recession