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Stagnation

stag-NAY-shun /stæɡˈneɪʃən/

nounC1GRETOEFLIELTS

FormalStandard

A prolonged period of little or no economic growth, often accompanied by high unemployment.

Stagnation is different from recession (which is a decline) and implies a lack of dynamism or forward movement. It can be particularly challenging because it's not a sharp crisis but a persistent malaise.

The story behind the word. The word 'stagnation' comes from the Latin 'stagnare,' meaning 'to stand still, to be stagnant' (like water in a pond). This, in turn, comes from 'stagnum' (a pool of standing water). In English, 'stagnate' first appeared in the 17th century, referring to water, and its economic sense, describing a lack of movement or growth in the economy, emerged in the 19th century.

Word relationships

slump: A severe or prolonged downturn, often implying a more active decline than stagnation.
quiescence: A state of inactivity or dormancy, more general than economic stagnation.

growth: The process of increasing in size, amount, or degree.
expansion: A phase of the business cycle characterized by increasing economic activity.

Commonly confused with

Recession: A recession is a period of negative economic growth (decline), whereas stagnation is a period of zero or very low economic growth.

Word family

stagnate (verb): to cease to flow or move; to show no activity or development
stagnant (adjective): showing no activity; dull and sluggish

Collocations

economic stagnation
prolonged stagnation
wage stagnation
avoid stagnation

Example sentences

"Years of political instability led to economic stagnation, with businesses hesitant to invest and job creation at a standstill." Analyzing a long-term trend.
"Policymakers are concerned about the risk of prolonged wage stagnation, which could harm consumer purchasing power." An economic forecast.

Memory hook

Think of a 'stagnant' pond – no fresh water flowing in, no growth, just sitting still. Economy Stands Still

When not to use

Do not use 'stagnation' to describe a temporary pause or a slight dip; it implies a prolonged and significant lack of growth.

Fun facts

The term 'stagflation' combines 'stagnation' and 'inflation,' describing a rare and challenging economic condition of high inflation and high unemployment with little growth.
Japan's 'Lost Decades' (1990s and 2000s) are often cited as a prime example of prolonged economic stagnation.