Definition ∞ An economic slowdown signifies a deceleration in the rate of economic growth. This phenomenon is characterized by reduced business activity, decreased consumer spending, and potentially rising unemployment. It represents a period where the economy expands at a less vigorous pace than previously observed.
Context ∞ The current economic environment is characterized by widespread concerns about a potential economic slowdown, influenced by factors such as inflation, interest rate hikes, and geopolitical instability. Discussions frequently involve the impact of such a slowdown on various asset classes, including digital assets, and the potential for a recession. A critical future development to watch is how central banks navigate monetary policy to mitigate inflation without precipitating a severe downturn.
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