Economic shock

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 ?
Tax reforms have caused economic shock among the poorThe.
Moody's says that the outlook for sovereign creditworthiness in the Commonwealth of Independent States (CIS) in 2018 is stable overall, in view of the healthy economic growth and stable oil prices seen after the region-wide economic shock of 2014-16.
A major economic shock, like exiting the European Union without a deal, could push many indebted families over the edge" - Liberal Democrat leader Sir Vince Cable.
The Prime Minister, saying they were in "touching distance" of an agreement on this issue in the Brexit negotiations "A major economic shock, like exiting the European Union without a deal, could push many indebted families over the edge.
At the same time, more than 75 percent of the country's middle class remain in the 2-4 dollar daily consumption bracket, the lower end of a range of 2 to 20 dollar, leaving them at risk of falling back into poverty in the event of a major economic shock, such as the global financial crisis.
It would take a severe economic shock to drive prices down, which would bring a spike in foreclosure activity.
Brazil's president from 1995 to 2003, sociologist Fernando Henrique Cardoso led one of the world's largest privatization programs and navigated the country through a series of economic shock waves.
This is a myth deriving from a broader misrepresentation that a debt-laden Britain with a growing trade deficit and ever-declining manufacturing sector -which is our bread and butter and hugely more profitable than services -is performing well, and is not, as is the true picture, highly vulnerable to any major world economic shock.
He's succeeded with an economic shock program that drastically cut public expenditures, immediately eliminated many state subsidies, and froze the printing of money.
Ward's new role as economic special advisor comes at a significant time when Hammond is looking to contain the economic shock of June's vote to leave the EU, and at ways to protect Britain's financial services sector in upcoming EU talks.
Smaller businesses and the people they employ are particularly vulnerable to any economic shock which could follow a vote to leave the EU.
But if the UK votes to leave, every credible independent voice agrees there would be a profound economic shock that would hurt people's jobs, livelihoods and living standards.