What are the Indicators of Economic Crisis?

economic crisis

The word ‘economic crisis’ and its occurrence are like a nightmare for the countries. It is a researched fact that the economic crisis does not occur overnight. There are alarming indicators that determine how an economic crisis is going to destroy the economy gradually. The major indicators of the economic crisis are:

  • Falling manufacturing activity: with the declining number of manufacturing of industries, it indicates that that efficiency of production is going down. This means that the markets are going to fail in the coming time which is one of the indicators of economic crisis. This indicates that the overall business cycle is going to be disturbed,
  • Stock market prices: Although the stock market does not give an exact or clear indicator of economic crisis because it keeps on changing day-by-day but one cannot ignore the dynamics of the stock market.
  • The supply and demand side fluctuations: in this case of supply and demand side fluctuations many fields of the economy like industries, real estate businesses, entrepreneurship, etc can cause an economic crisis. The changing prices and demand and the declining supply of goods and services can influence the flowing trend of the economy. it can destabilize the economy.
  • Quantitative easing: printing of more money is also not a good signal for the economy as it can also lead to the economic crisis.

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