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 ?
The joblessness in Saudi Arabia, the Saudi officials' mismanagement of the crisis created by the economic shock of decreased oil prices and their lack of planning for confronting social dangers, have increased poverty and are the reason behind the Saudi youths' tendency for Takfiri terrorism," Tallah Akram told FNA on Thursday.
The report noted that the national economy was able to overcome the effects of the economic shock faced and witnessed stablity in all indicators.
Under such circumstances, the need for fiscal encouragement declines, which creates more room for the fiscal policy in the event of a future negative economic shock, Governor Dimitar Bogov says in his interview with Dnevnik.
We've just emerged from a difficult security situation and economic shock, and a boost is necessary, even if the deficit grows.
Since the secession of the oil-rich South Sudan, the Sudanese economy suffered an economic shock marked by high inflation, eroding currency value and growing deficits.
Although the initial economic shock of the recession does increase suicide risk, policies that promote re-employment may reverse this trend", they said.
CAMP: Cabin at G8 In TV interviews, Mr Cameron stressed if debt-ridden Greece crashed out of the single currency, there would be global economic shock waves.
Further, the report said that the economic shock that followed the collapse of the Lebanese Cabinet this January was similar to the economic shocks that followed the assassination of Prime Minister Rafik Hariri in February 2005 and the July 2006 War.
Stress testing of about 90 European Union banks began this month, and on Friday the European Banking Authority published details of the economic shock that will be applied to individual banks and the test's methodology.
More than 75 per cent of the country's middle class remain in the $ 2 to $ 4 daily consumption bracket, the lower end of a range of $ 2 to $ 20, leaving them at risk of falling back into poverty in the event of a major economic shock, such as the global financial crisis," the report adds.
The euro makes it easy to justify policies and mobilize the people, but calls to reduce the budget deficit don't have so much to do with the euro, but instead with the fact that the economic shock has been huge,' he said.