Definition
Economic stability refers to a condition in which an economy experiences a steady and sustainable level of growth, low inflation, low unemployment, and a stable currency. It is characterized by a lack of dramatic volatility in important economic indices, producing an atmosphere conducive to long-term planning and development. Economic stability is crucial for the general well-being of a nation. It creates a framework for sustainable development, encourages foreign investment, and supports a positive corporate climate. A stable economy minimises uncertainty, fosters long-term planning by businesses and individuals, and strengthens the resilience of the economic system to external shocks. Policymakers, central banks, and governments try to establish and maintain economic stability through a combination of solid fiscal, monetary, and regulatory policies.
