What is meant by 'economic sanctions'?

Economic sanctions refer to punitive measures imposed by one country or a group of countries on another, aimed at restricting or curtailing trade and economic interactions with the target nation. These sanctions are often implemented in response to undesirable actions, such as human rights violations, aggression, or the pursuit of nuclear weapons. By limiting access to markets, capital, and resources, the goal is to exert pressure on the government of the sanctioned country to change its behavior or policies.

In contrast to incentives that encourage trade, economic sanctions serve to limit it, making them a tool of coercive diplomacy. While measures to facilitate financial transactions and agreements promoting economic cooperation are focused on fostering positive economic relations, sanctions are explicitly designed to punish and isolate a country economically.