economic impact

Definition |


The effect that an event, policy change, or market trend will have on economic factors such as interest rates, consumer confidence, stock market activity, or unemployment. Events such as regulatory changes, supply shortages or natural disasters can have a significant economic impact due to the way that they affect business activities.

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You should try and figure out what the economic impact of any big event may be and adjust to it.

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Regardless of longer term trends, the economic impact of the 2008 recession has created an environment of low growth and low inflation in the U.S. and the Euro zone.

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Regulations can often have an unexpected or even perverse economic impact, for instance an attempt to reduce rat populations by paying a bounty for rat tails led to the farming of rats.

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