Economic Conditions

AAA

DEFINITION of 'Economic Conditions'

The state of the economy in a country or region. Economic conditions change over time in line with the economic and business cycle, as an economy goes through expansion and contraction. Economic conditions are considered to be sound or positive when an economy is expanding, and are considered to be adverse or negative when an economy is contracting. A country's economic conditions are influenced by numerous macroeconomic and microeconomic factors, including monetary and fiscal policy, the state of the global economy, unemployment levels, productivity, exchange rates, inflation and so on.

INVESTOPEDIA EXPLAINS 'Economic Conditions'

There are numerous economic indicators that are used to define the state of the economy or economic conditions. Some of these are the unemployment rate, levels of current account and budget surpluses or deficits, GDP growth rates, inflation rates and more. Economic data is released on a regular basis, generally weekly or monthly, and sometimes quarterly. Some economic indicators like the unemployment rate and GDP growth rate are watched closely by market participants, as they help to make an assessment of economic conditions and potential changes in them.

RELATED TERMS
  1. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
  2. Economy

    The large set of inter-related economic production and consumption ...
  3. Contraction

    A phase of the business cycle in which the economy as a whole ...
  4. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced ...
  5. Gross National Product - GNP

    An economic statistic that includes GDP, plus any income earned ...
  6. National Bureau of Economic Research ...

    This private, non-profit, non-partisan research organization's ...
Related Articles
  1. thinkstock|istock
    Economics

    Understanding Supply-Side Economics

  2. thinkstock|istock
    Economics

    What You Need To Know About The Employment ...

  3. Economics

    The Uncertainty Of Economics: Exploring ...

  4. Personal Finance

    Demographic Trends And The Implications ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center