An economic threat refers to any situation or event that has the potential to negatively impact an economy, either locally, nationally or globally. This can include things like recessions, inflation, high unemployment rates, natural disasters, political instability, trade wars and other factors that can cause uncertainty in financial markets, reduce consumer spending, decrease investment, lower economic growth, increase debt levels, and generally lead to a decline in the overall well-being of an economy. Economic threats are often monitored closely by governments, central banks, businesses and individuals as they can have significant consequences for people's livelihoods, financial stability, and long term economic prospects.