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Economics vocabulary · Economic News and Data

Shock

Meaning in economics, with examples

/ʃɒk/nounCommon term

In economics, shock means: A sudden, unexpected event that has a large effect on an economy, such as a jump in oil prices, a natural disaster or a financial crisis.

In Turkish: şok

How it is used

Economists divide shocks into supply shocks, which raise costs or cut production, and demand shocks, which change spending. Common phrases are an oil shock, an external shock and a negative or positive shock. Economies absorb, withstand or are hit by shocks.

Example sentences

  1. The drought was a supply shock that pushed food prices sharply higher.

  2. Large reserves help an economy absorb external shocks.

Common collocations

  • supply shock
  • demand shock
  • oil shock
  • external shock
  • absorb a shock
  • cost-push inflationInflation caused by rising production costs, such as higher energy prices, wages or import costs, which firms pass on to their customers.
  • stagflationA painful mix of high inflation, weak or no growth and rising unemployment, all happening at the same time.
  • 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.
  • foreign exchange reservesAssets in foreign currencies, such as dollars and euros, held by a central bank to pay for imports, repay foreign debt or support the national currency.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Economic News and Data

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