GDP, Recession, Economic Contraction …
Still trying to make sense out of all these words that are thrown at us everyday?
They may sound like scary words with cause for pessimism but, actually, its really just cause for rethinking and planning.
You see, the GDP is just the market value of all our finished goods and services and is used to measure the state of the economy. When we see it rise, the economy is growing… meaning unemployment is decreasing and business confidence and spending is increasing. When it decreases, or contracts, the opposite is happening. If it dips below 0% for two consecutive quarters, we are technically in a recession.
GDP fluctuates up and down constantly depending on what is happening around the country and even the world at the time. This can also be called ‘the business cycle’. What goes up must come down, and vice versa.
Safe to say that a global pandemic is going to cause havoc on the business cycle… indeed it has. However, rather than run for the hills, this is an opportunity to plan and grow and jump onto the rising elevator of the business cycle.
Let’s have a quick look at the GDP fluctuations over the last 30 years. The global financial crisis in 2008-2009 saw a major contraction in the business cycle, as did the ‘recession we had to have’ in the 1990’s. But look at what happens to the cycle directly after these contractions. There is a boom almost larger than any before.
Australia may be in recession but this is the elevator you want to jump on now with a forecast boom like never before ahead of us.
From Deloitte Access Economics https://www2.deloitte.com/au/en/pages/media-releases/articles/deloitte-access-economics-world-coming-covid-19-economic-cropper-but-australia-fare-better-than-most-120520.html
Now is the time to innovate, adapt, plan and grow your business.
And Upland Consulting can help. Let us help you define your business and strategise your way UP the elevator of the business cycle.