Macro Environment


DEFINITION of 'Macro Environment'

The conditions that exist in the economy as a whole, rather than in a particular sector or region. In general, the macro environment will include trends in gross domestic product (GDP), inflation, employment, spending, and monetary and fiscal policy. The macro environment is closely linked to the general business cycle , as opposed to the performance of an individual business sector.


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BREAKING DOWN 'Macro Environment'

The macro environment in which a company or sector operates will influence its performance, and the amount of the influence will depend on how much of the company's business is dependent on the health of the overall economy. Cyclical industries, for example, are heavily influenced by the macro environment, while consumer staples are less so.

  1. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced ...
  2. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
  3. Macro Accounting

    Accounting for the total or aggregate economic activities of ...
  4. Applied Economics

    The application of economic theories and principles to real world ...
  5. Macroeconomics

    The field of economics that studies the behavior of the aggregate ...
  6. Microeconomics

    The branch of economics that analyzes the market behavior of ...
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