See the below image for the Current position global economic cycle diagram. The economic cycle is a trend of upward and downward movements of GDP that ultimately determines the overall long-term growth of an economy. GDP measures the aggregate value of goods and services and is used to depict the overall wealth of an economy. Higher GDP usually correlates with more well-off citizens.
The variables, in aggregate, shape the economy and the state of the economic cycle. The economic cycle is a trend of upward and downward movements of GDP that ultimately determines the overall long-term growth of an economy. GDP measures the aggregate value of goods and services and is used to depict the overall wealth of an economy.
The peak is reached when the growth of an economy reaches a plateau or maximum rate. It is usually characterized by higher inflation that needs to be corrected. The correction occurs through the contraction phase, wherein the growth of the economy slows, unemployment rates rise, and inflation tapers off.
Current position global economic cycle image
