Stagnation is a prolonged period of little or no growth in an economy often highlighted by periods of high unemployment. A rate of growth of less than 2-3% annually as measured by gross domestic product (GDP) is considered stagnation.

Stagnation can occur on a macroeconomic scale or in specific industries or companies. Stagnation may be either a temporary condition, such as a growth recession, temporary economic shock, or part of an economy's long-term structural condition.