Economic Outlook refers to the projection of future economic conditions based on current trends and policies. It includes various aspects such as GDP growth rate, unemployment rate, inflation rates, interest rates, and fiscal policy.
Why is Economic Outlook Important?
The Economic Outlook plays a crucial role in decision-making for both individuals and businesses. It helps them make informed decisions about investment opportunities or job prospects that may arise.
What Factors Affect Economic Outlook?
Several factors affect Economic Outlook, namely:
- GDP Growth Rate - GDP measures the total value of goods produced by a country within a given time frame. If this number goes up over time, it indicates that the economy is growing.
- Unemployment Rate - Unemployment levels point towards the health of an economy. High unemployment means fewer people are spending money which leads to lower production; conversely low unemployment signals expansion.
- Fiscal Policy - Governments use fiscal policy mainly taxations and public expenditure as tools to affect their economies’ performance.
How Can We Improve the Economic Outlook for Individuals?
The following strategies help in improving personal economic outlook:
- Saving some percentage every month
- Investing wisely with long-term goals
- Building strong employment history & marketable skill set
Can Businesses Do Anything About Improving National Actions Regarding Fiscal Policies?
Yes! Engaging policymakers on behalf of business interests can positively impact national actions regarding fiscal policies.It has happened before—quick recall "America's first corporation", along with other early American Corporations like East India Company have impacted political legislation throughout different periods across US history when lobbying government officials through campaigns on policies favourable to corporations' business interests.
How does inflation affect my purchasing Power during recession times?
During recessionary times, weak consumer demand may lead companies to cut back operations causing decrease production; subsequently leading many employees losing their jobs or shifts getting reduced after lockdowns or other adverse economic events. The unemployment rates increasing cause a significant decrease in spending power leading to less overall money spent, with companies producing fewer goods and services hence consumers having more cash on hand but less access to desirable products causing inflation to rise.
References
- Stiglitz, Joseph E. The Great Divide. W.W.Norton & Company 2015.
- Harmse, Jacques A.E "An evaluation of consumer perceptions on fiscal policy and their impacts upon economic decision making" SA Journal of Economic and Management Sciences 2004
- Smith, Adam,” Money is only as valuable as the degree it can buy",from Essays On Political Economy Penguin Classics edition 1982
- Samuelson Paul; Nordhaus William D."Economics - Nineteenth Edition". McGraw-Hill Education (Asia). ISBN 978-981-06-0097-4.:19–21.
5.Hall Robert E.; Lieberman Marc Macroeconomics: Principles & Applications Crosby Middle School2000
