What is an economic slowdown?

When we talk about economic slowdown, it is not a term that sounds quite right, and the truth is that it is not. It is the period or moment in which economic growth stops working or slows down with respect to a previously measured period.

This implies that, for this phenomenon to take place, there must have been a period of economic growth in which better results have been obtained than in the period of deceleration. The deceleration begins to be noticed when in the current period or moment the same results are not obtained as in the previous period of time that is being taken as a reference.

However, it does not mean that the deceleration data wants to indicate that negative records are taking place on the data measured in the period. Only that some reason is causing that the results obtained in economic growth are not going at the same rate as in the previous period.

In short, we could say that the slowdown could predict a recession, a crisis or an economic depression. However, as we have indicated, it could only "predict", so the results may or may not be in accordance with reality.

To measure economic growth of a country, some economic indicator could be used that correctly and relatively represents growth in terms of well-being and the country's economy (specifically, its income level). For this, the GDP It is the indicator taken as a reference to be able to see the economic growth of a country. It is easy to calculate and the results are comparable with those of other countries.

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