Reasons why economy of a country declines


Economy decline of a country is mainly caused by poverty. When the wealthy is concentrated in the hands of few people while other people remain poor, there is no way for such a country's economy will grow. Equall distribution of wealthy among the people standardize the rate of poor and rich thus reducing poverty.Other reasons of a country economy decline are:

Pandemic diseases such as HVI/AIDS and Covid-19 consume a lot of country's resources for treating and preventing.For example a lot of resources that could have been used to grow the economy of the countries globally have been spent in research for finding cure of the Covid 19.

Debts. Internal and external debts also can make the economy of the country to decline. This is due to more outflow of the country's government revenue in paying the debts when it generates income that could be used in growing the economy.

Natural calamities such as floods,drought and famine cause economy decline. Poor management of country's resources, stock market crush, deflation, loss of confidence in investment and the economy, political instability such as war and poor technology. When a country experience these factors, corrective measures should be taken immediately.