Real macroeconomic output can be decomposed into a trend and a cyclical part, where the variance of the cyclical series derived from the filtering technique serves as the primary measure of departure from economic stability.
Economic stability refers to the absence of excessive fluctuations in the overall economy. An economy with constant output growth and low and stable price inflation is likely to be regarded as stable. An economy with frequent boom-bust cycles and variable price inflation would be considered as unstable.

Economic stability enables other macro-economic objectives to be achieved, such as stable prices and stable and sustainable growth. It also creates the right environment for job creation and a balance of payments.
Real GDP per capita Gross domestic product (GDP) is an important indicator of economic stability because it monitors the overall growth or output of a given area. … Real GDP is used to give a better, more accurate reflection of GDP while, at the same time, accounting for inflation.
The economy may do well in terms of attracting foreign direct investment because stability means a predictable political environment. … The economy eventually suffers because of these. Consequently, stable governments do not necessarily lead to higher economic growth.
In turn, economic stability, and rising prosperity that is broadly shared—both within and among countries—can foster peace. … More recently, in many parts of the world, economic instability provoked political upheaval, social unrest, and conflict.