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. Expansion

    The phase of the business cycle when the economy moves from a ...
  3. National Income Accounting

    A term used in economics to refer to the bookkeeping system that ...
  4. Economic Indicator

    A piece of economic data, usually of macroeconomic scale, that ...
  5. Economy

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

    A phase of the business cycle in which the economy as a whole ...
Related Articles
  1. Understanding Supply-Side Economics
    Economics

    Understanding Supply-Side Economics

  2. What You Need To Know About The Employment ...
    Economics

    What You Need To Know About The Employment ...

  3. The Uncertainty Of Economics: Exploring ...
    Economics

    The Uncertainty Of Economics: Exploring ...

  4. Demographic Trends And The Implications ...
    Personal Finance

    Demographic Trends And The Implications ...

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center