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Economic Risk

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Economic risk
In project financing, the risk that the project's output will not be salable at a price that will cover the project's operating and maintenance costs and its debt service requirements.

Economic Risk
The possibility that an economic downturn will negatively impact an investment. For example, launching a luxury product immediately before or during a recession carries a great deal of economic risk. Economic risk is closely related to political risk as government decisions impacting the economy may also affect an investment. For example, a central bank may raise interest rates or the legislature may raise taxes, and this may result in economic conditions impacting an investment.


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Turkey's Prime Minister Recep Tayyip Erdogan said that he believed there were still some serious economic risks in the world despite global recovery signals.
According to Deloitte Consulting, potential investors in the sector are looking at, in order of decreasing importance, political and economic risks, the availability of qualified personnel, foreign language proficiency, infrastructure, corruption and, lastly, tax breaks.
A partnership liability is recourse to the extent that one or more partners (or a related person) bear the economic risk of loss for the liability.
 
 
 
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