Political instability can severely impact a nation's economy by creating an uncertain environment for business investment and consumer confidence. In times of instability, foreign investors may withdraw their investments due to fears of financial loss or expropriation, leading to decreased economic growth. Additionally, governments may struggle to implement effective policies to stimulate the economy, resulting in high unemployment rates and inflation. Overall, prolonged instability can result in a vicious cycle where economic decline leads to further political unrest, ultimately jeopardizing the country's ability to provide basic services and stability for its citizens.