Adverse economic conditions refer to situations that negatively impact the economy, such as high unemployment rates, inflation, or declining consumer spending. These conditions can lead to reduced business profits, lower investment levels, and overall economic stagnation. When people have less money to spend, businesses may struggle to maintain operations, leading to further job losses. During adverse economic conditions, governments often implement measures to stimulate growth, such as lowering interest rates or increasing public spending. These actions aim to boost consumer confidence and encourage investment, helping to stabilize the economy and improve the financial well-being of individuals and businesses alike.