Okuzeka
Economics vocabulary · GDP and Growth

Boom

Meaning in economics, with examples

/buːm/nounCommon term

In economics, boom means: A period of very fast growth in the economy or in one sector, with rising demand, prices, profits and jobs.

In Turkish: patlama, hızlı büyüme dönemi, canlılık

How it is used

Used for the whole economy or for one sector: a housing boom, a credit boom, a commodity boom, a tech boom. Booms often end in a bust, hence the phrase boom and bust. It is also a verb: business is booming.

Example sentences

  1. The housing boom ended when interest rates rose sharply.

  2. Policymakers want to avoid another cycle of boom and bust.

Common collocations

  • housing boom
  • credit boom
  • boom and bust
  • economic boom
  • post-war boom
  • bubbleA situation in which the price of an asset such as housing or shares rises far above its real value because buyers expect it to keep rising, until it eventually collapses.
  • business cycleThe repeated pattern of ups and downs in economic activity, moving from expansion to a peak, then to contraction and a low point, and back to recovery.
  • expansionThe phase of the business cycle when output, jobs and incomes are growing, lasting from the low point after a recession to the next peak.
  • overheatingA situation in which demand grows faster than the economy can produce, leading to rising inflation, labour shortages and often a large current account deficit.
  • recessionA significant fall in economic activity lasting months, with falling output, income and jobs; often defined as two quarters in a row of shrinking GDP.

More terms: GDP and Growth

Practise with graded reading

Reading at the right level is the fastest way to make new words stick. Pick free English books by level:

This page explains English vocabulary for learners. It is not financial advice.