In economics, a death spiral refers to a situation in which a market or financial system faces an imminent or complete collapse, often triggered by a sequence of events that are usually unexpected or the result of poor investment decisions. This term is used to describe a scenario where various negative factors converge, inevitably leading to a severe and rapid deterioration of the market or economic conditions. It can be likened to a "perfect storm" of adverse developments that contribute to a significant downturn or crisis.