Homonym: Downturn (Decline)
A downturn refers to a period of declining economic activity, often characterized by reduced consumer spending, lower production levels, and rising unemployment. This can occur in various sectors, affecting businesses and individuals alike. Downturns can be triggered by factors such as financial crises, changes in government policy, or shifts in consumer behavior.
During a downturn, key indicators like Gross Domestic Product (GDP) may decrease, signaling a contraction in the economy. Governments and central banks often respond with measures such as stimulus packages or interest rate cuts to encourage growth and stabilize the economy. Understanding downturns is essential for making informed financial decisions.