Growth stagnation refers to a period when an economy experiences little to no growth in its output or productivity. This can occur due to various factors, such as reduced consumer demand, high unemployment rates, or ineffective government policies. When growth stagnates, businesses may struggle to expand, leading to fewer job opportunities and lower wages. During growth stagnation, investments often decline as companies become hesitant to spend on new projects. This can create a cycle where low growth leads to reduced confidence, further hindering economic progress. Policymakers may implement strategies to stimulate growth, but recovery can be slow and challenging.