Economic shock

(redirected from Economic Shocks)

Economic shock

Events that impact the economy which originate from outside it. They are unexpected and unpredictable (e.g., Hurricane Andrew in 1991, the rise in oil prices by OPEC).

Economic Shock

An event that can cause a sudden, drastic change in an economy. For example, if it were suddenly discovered that there is no more oil in the world, this would cause economic shock, causing prices to skyrocket. Likewise, if the technology was developed to make oil obsolete and was announced with no notice, it would cause an economic shock in the other direction. An economic shock can be either positive or negative; likewise, it can be temporary or permanent. See also: Price in.
References in periodicals archive ?
For the 2016-2020 period, the World Bank Group will emphasize two main pillars: the promotion of inclusive growth and support for environmental and fiscal sustainability with resilience to climate change and economic shocks.
The researchers modelled a range of inter-connected, dynamic economic shocks on 170 Eurozone banks in 16 countries, and the spread of that effect to other countries from 2005-2013.
Between 1995 and 2013, recycled gold accounted for a third of total supply and an analysis of recycling data from 1982 to 2012 reveals that price fluctuations accounted for around 75 percent of the changes in recycling volumes and that economic shocks can boost recycling by up to 20 percent, it said.
PTSB was one of 25 eurozone banks - and the only Irish institution - which failed the stress tests, designed to ensure lenders can withstand future economic shocks.
Grenada's economy continues to face significant headwinds after a decade of natural disasters and economic shocks coalesced into a deep economic crisis by 2011-12.
He also noted that countries operating dated and non-transparent accounting systems face a range of risks and perils, including a reduced ability to foresee and manage economic shocks.
According to the Guterres, "Lebanon has experienced serious economic shocks due to the conflict in Syria", while security has deteriorated as a result of rising regional instability.
He told the National Iraqi News Agency / NINA/: "Iraq needs to boost its reserves to move away from economic shocks.
The Chancellor cited new Treasury figures showing a go-it-alone Scotland would be more susceptible to economic shocks as a result of its reliance on volatile energy markets.
Situated in the Pacific, they are highly exposed to natural disasters and climate change as well to economic shocks.
The committee said the shortfall was based on a target of minimum new capital ratios banks must meet to strengthen their balance sheets in order to comply with tough new rules set by the committee to help banks withstand economic shocks.