Soft Landing Definition - Glossary

Soft Landing is a smooth economic slowdown avoiding recession, maintaining growth and stability.

Soft Landing is an economic term describing a scenario where an economy slows down without entering a recession. Policymakers aim to reduce inflation and curb excessive growth while maintaining employment and economic stability. It involves carefully calibrated interest rates and fiscal policies to balance growth and control inflation. The goal is to gently decelerate the economy, avoiding the severe downturns typical of hard landings. Successful soft landings result in sustained economic health, preventing abrupt disruptions in markets and employment. It is a challenging task, requiring precise economic adjustments and monitoring by government and financial institutions.