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Economic Slowdown

An economic slowdown is a period of slower economic growth, typically characterised by a decrease in the rate of growth of real gross domestic product (GDP). An economic slowdown can be caused by a variety of factors, including declining consumer and business confidence, rising unemployment, and slowing global trade.

An economic slowdown is often distinguished from a recession, which is a more severe downturn in economic activity, characterised by negative growth in real GDP. However, a prolonged economic slowdown can sometimes lead to a recession.

Policy makers may use a variety of tools, such as monetary policy (e.g., interest rate cuts) and fiscal policy (e.g., government spending), to try to stimulate economic growth during a slowdown.

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