Stagnation

Stagnation refers to a prolonged period of slow or no economic growth, typically accompanied by high unemployment and underutilization of resources. During stagnation, demand is weak, businesses invest less, and there is little improvement in living standards. While not as severe as a recession, stagnation can lead to declining productivity, poor wage growth, and overall economic malaise.

Example

Japan experienced economic stagnation in the 1990s and 2000s, with slow growth, low inflation, and high unemployment, despite various efforts to stimulate the economy.