Topic: What brings economy of a country down. - page 3. (Read 1685 times)

A lot of people say that the economy is going down because of the pandemic and the urgent chaos created because of it but we need to understand that the economy must be flexible and strong enough to overcome such crisis. I mean how did China recover so fast from Corona virus when they were the one who were hit the hardest and first one to face it? That's because they had a solid system and created facilities like opening hospitals providing necessities to people at their home.

While other Asian countries like India failed miserably because of not having an economic structure strong enough to face such situations.

I think the primary reason why economy going down because of corruption. Next is because of unexpected pandemic like Covid19 virus that caused a worst effect to our economy and to the life of everyone.

I think the primary reason why economy going down because of corruption. Next is because of unexpected pandemic like Covid19 virus that caused a worst effect to our economy and to the life of everyone.

And why would they sell their oil in cheap prices?

It depends on if they are able to sell their oil. If they can only export their oil and oil products at cheap prices then they will have less cash at hand and that will hurt their economy.

I agree that some countries like Dubai have their economy in check because of the natural oil reserves it has.

1. Stock market crash
The stock market is composed of stocks that investors own in public companies. Changes in shareholdings can be a reflection of how an economy is doing. When the stock market crashes, it can be an indication of investors’ declining confidence in the economy.

2. Decrease in manufacturing orders
A business flourishes on the demand for its products and services. When manufacturing orders reflect a decline, especially for an extended period of time, it can lead to a recession and worse, to an economic depression.

3. Control of prices and wages
Price controls happened once during the term of former U.S. President Richard Nixon when prices kept going higher. Also, when wages are controlled by the government and companies are not allowed to lower them, businesses may be forced to lay off employees to survive.

4. Deflation
Deflation is basically the lowering of consumer prices over time. It may seem like a good thing because people can now afford to buy more commodities but underneath it is the fact that prices are lowered because of a decline in demand, too.

5. Oil price hikes
How oil price hikes can cause a ripple effect on almost everything in the market is common knowledge. When it happens, consumers lose their purchasing power, which can lead to a decline in demand.

6. Loss of consumer confidence
When consumers are no longer confident in the economy, they will alter their spending habits and eventually reduce the demand for goods and services.

That is not really how it works else the government officials would have already thought about it. Every country has its own specialty or a supply of something that keeps the trade market alive and its economy on the feet.

For example: Dubai has high supply of crude oil which boosts its economy, India has highest number of pharmaceutical companies and produces 60% of the world’s medicines and vaccines. Diversification works if your country has more than one thing to offer and that also has certain limitations. Economy is a much complicated subject than most of the people believe it to be.

Economy of some country has fall due to they channel their economy one side,what brings economy down is base on focusing on one particular thing not be diversified in different sectors, so when that particular product fails to trend in market the way it's before such country will be shortage of economy and the life of the people will be in danger base on things is moving wrongly to the country.
And the way a country can be free from falling of economy is to spread their economy or diversified economy so that when one of sector shutdown another will pick up.

Inflation rate due to many reasons. One of the reason is due to priniting a lot of fiat money. The valuen of fiat depend on the asset, resources and the economy itself to which sum up with a  value of that certain country and then divide among thr number of fiat money. The more fiat money they produce the lesser value or capacity of that money to exchange for goods and services just like China.  China now is one of the richest country yet the value of their money is not that much worth. Due to the high number of fiat currency being printed.