What is stagnation? Stagnation is when the economy seems to have stopped: it is neither growing nor shrinking, but simply standing still. Imagine you are riding a bicycle and suddenly stop pedaling. You won't stop immediately, but you are no longer moving faster. This is stagnation in the economy.
Why is this bad? First, economic stagnation means that businesses are not making more profits, and people are not receiving higher salaries. This makes it difficult to improve the standard of living. Secondly, when the economy is not growing, it is harder for the government to tackle issues such as unemployment or inflation.
Imagine you are shopping, and prices remain the same, but your salary does not increase. It may seem like a good thing — everything is stable. But it also means that you do not have the opportunity to save more money or spend on something bigger, which limits your choices and future plans. But most likely, prices will rise, while your salary will not.
This is why stagnation is a serious threat that can negatively impact the overall development of the country. The economy seems to be in a slumber, and waking it up can be more difficult than it may seem at first glance.