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 Welsh Government is doing everything it can to prepare for the economic shock of a no-deal Brexit, Economy Minister Ken Skates told UK Government ministers yesterday.
Ive spoken to businesses based in Wales, businesses considering re-locating to Wales, unions, workers and investors and the message has been crystal clear the economic shock and subsequent knock on effect of investment, employment and livelihoods could be significant.
Based on Fitch, the Georgian economy proved resilient to a severe economic shock in Turkey and heightened sanctions risk in Russia in 2018, thanks to a diversification of sources of current account inflows, the floating exchange rate and prudent fiscal and monetary policy settings, underpinned by steadfast adherence to its IMF programme.


While we don't share the extremely negative view of some, we can say with some confidence that no-deal would be a substantial economic shock."
The same things that had protected Egypt from the 2008 crisis (regulation, protection, rigidity) hindered its ability to recover quickly from a domestically generated economic shock.
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.
"EU citizens living lawfully in the today will be able to stay." - 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."
"We looked at how couples respond to negative shocks and in particular, if they have a major bad economic shock or worsening of their household finances," she said.
A MAJOR economic shock caused by Brexit could see "significant liabilities" on the government's balance sheet "crystallise" and hit economic growth, the Whitehall spending watchdog has warned.
Economic evidence from independent experts show that the UK will face a serious economic shock in the event of leaving the EU.
It kills me - I'm terrified of spiders" Stoke City and former Aston Villa footballer Peter Crouch, 6ft 7in "In my judgment as Chancellor, leaving the EU would represent a profound economic shock for our country, for all of us, and I'm going to do everything I can to prevent that happening" George Osborne "A con artist with the worst spray tan in America" Marco Rubio's description of Donald Trump, a rival for the Republican nomination for the White House