soft landing investment & finance definition

A term applied to an economy that begins to slow after a long period of strong growth. A soft landing is characterized by only moderate decreases in growth, employment, and consumer and corporate spending as opposed to experiencing a drastic worsening of economic conditions. The term became popular after the U.S. economy began to slow after its rapid growth in the later half of the 1990s. A soft landing, rather than a recession, is the desired outcome after a period of strong economic growth.