Political instability adversely affects economic growth by creating an environment of uncertainty that hampers investment and consumer confidence. Businesses are less likely to invest in unstable regions due to the risks of government changes, civil unrest, or policy shifts. This lack of investment stifles job creation and innovation, leading to slower growth. Moreover, political instability often results in inefficient governance, corruption, and poor infrastructure, which further deter economic progress. As a result, countries facing political turmoil often witness a vicious cycle of economic decline and escalating instability.