Economic decline refers to a period when a country's economy experiences a decrease in its overall output, often measured by a decline in Gross Domestic Product (GDP). This can result from various factors, including reduced consumer spending, high unemployment rates, and decreased business investment. Economic decline can lead to lower living standards and increased poverty levels. During economic decline, businesses may struggle to maintain profitability, leading to layoffs and further job losses. Governments may respond with policies aimed at stimulating growth, such as lowering interest rates or increasing public spending. However, recovery can take time and may require structural changes in the economy.