Every three months, the Central Statistical Office tries to answer this question, presenting the results of an experimental study. The result is a graphics depicting a “business clock”. Tuesday publication suggests that our country is In the recovery phase, although it is not very clear. We don't divide much from the border, after which there is a slowdown and recession.
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Central
This clock will be created after an analysis of business cycles made on the basis of complex indicators describing in a synthetic manner of business incidental fluctuations in the entire economy conducted as part of the work of experimental statistics.
“The parallel (simultaneous) indicator reflects the current state of the situation,” indicates the Central Statistical Office. “The business cycle clock (phase chart of the business cycle) is a tool that facilitates the analysis of the business cycle.
The boom clock. What are the phases of the economic cycle?
Understanding the business cycle helps companies better plan investments, counting the appropriate economic policy (e.g. reduction of interest rates in recession), investors predict changes in markets.
There are several stages of a typical business cycle:
- Expansion (economic growth) – production, employment, investments and consumption are growing. Enterprise profits are increasing and unemployment is decreasing
- Summit (business hill) – the economy reaches the highest activity point, and the growth begins to brake due to overheating of the economy (e.g. inflation)
- Slow / Recession – production is falling, unemployment is growing, demand is reduced, investments are suspended, and the profits of companies are decreasing
- Bottom (crisis / depression) – the lowest point of the cycle, the economy reaches a minimum, then a new recovery phase may begin
