Economic uncertainty refers to the unpredictability surrounding the future state of the economy. This can arise from various factors, including changes in government policies, fluctuations in market conditions, or global events such as pandemics or conflicts. When economic uncertainty is high, businesses and consumers may hesitate to make investments or purchases, leading to slower economic growth. During periods of economic uncertainty, indicators like unemployment rates and inflation can become volatile. Investors may also experience increased anxiety, causing stock markets to fluctuate. Overall, economic uncertainty can impact decision-making at both individual and organizational levels, affecting overall economic stability.