Political instability can adversely impact economic growth, creating an environment of uncertainty that deters both local and foreign investment. Investors seek stability for their ventures, and instability often leads to higher risks associated with business operations. Factors such as social unrest, government changes, or conflict can hinder economic development by disrupting markets and affecting consumer confidence. Moreover, instability may divert public resources away from necessary investments in infrastructure and services. The overall result is often slower economic growth rates and inefficiencies in resource allocation, which may perpetuate cycles of instability.