An economic crisis refers to a sudden downturn in the economy, leading to widespread financial instability, unemployment, and reduced consumer confidence. Such crises often reshape nations and global trade.
Common causes include financial mismanagement, excessive debt, asset bubbles, wars, and global shocks. These factors often combine to destabilize economies.
Economic crises usually result in unemployment, poverty, reduced trade, and political unrest. They also force governments to adopt new economic policies and reforms.