Nazar Alqahwachi - There are both economic and non-economic shocks that affect economic growth at the local, regional, and global levels. An economic shock refers to any change to fundamental macroeconomic variables or relationships that has a substantial effect on macroeconomic outcomes and measures of economic performance, such as unemployment, consumption, and inflation.

Non-economic shocks like imported social system or cultural factor which clash with ingenious social system or culture. Population growth may be cited as an example of this phenomenon. A small increase in capital through raising incomes will stimulate more than an equivalent increase in population, and a proportional decline in per capita income. This is very much true of developing and backward societies.

Steep rise in oil price, political turmoil, inflation, natural disasters, breakthrough in production technology

One common local/regional shock had been refugees or surge in in-migration. Also, the economic base of some local/regional areas depends on key industries such as mining, a major university, gambling, and distressed industries in general. When a national shock occurs to any of them, the local impact tends to be more severe. Of course, natural disaster such as hurricanes, earthquakes, etc are more popular supply shocks for local/regional areas.

Many thanks to ( Manzoor Hussain , Mousumi Bhattacharya , Lall B. Ramrattan) for there answers.

Could shocked be positively effect on national economic .

Corruption

Thank you Dr. Zeyad Samir .

The cultural beliefs of the regions that support and normalize the corruption of their leaders .

The hardest shocks to control are the ones caused by natural phenomena such as earthquakes, tsunamis, and floods. We all saw the effect on the supply chain from the Fukishima, Japan earthquake/tsunami. I remember that the U.S. auto industry couldn't get any black paint for awhile because it was made at a plant damaged from the disaster.

Many thanks to: ( Claudia Patricia Sacristan Rodriguez , Michele Nash-Hoff )

cultural constraints may refrain economic growth

1. CORRUPTION

War and using Northern Uganda as my point of reference in this regards, it has foiled off most of the economic activities in the region and of course not withstanding the power of natural disaster such as drought in most cases for that largely depends on Agriculture with little or no technology advancement in it

Natural disasters, unfortunately, can not be avoided. I would say that Governments play such an integral role in everything that happens in life, business, and emotional well being. They also lead to a great amount of corruption, which influences everything.

Shocks are episodic like those naturally occurring, i.e. typhoons, earthquakes, pandemics. Much of economic modelling are those related to non naturally occurring, too, like shocks, eg oil price, rice prices, banking crises. Corruption is endemic and does not figure much in the modelling, hence not factored in predictions, as it is treated as a given. I wonder if there can be tweaks to current economic models to provide a handle on how it can be the object (lower corruption) and not just fait accompli?

Many thanks to everyone who answered this question, I enjoyed the answers of the participants, the last of which was , the best and most accurate answers (Maria Cristina Bautista , Kimberly Ready , Richard Olanya ).

In our time, scientists from different disciplines must play a leading role in the design of public policies, not only in health but also in the economy, housing, defense, among others. It is also important to show that, in those countries in which the media play a role of political control, corruption is less, while, in the case of Latin America, where the media are friends of the governments in power, corruption is free. In our era, scientists and the media have the possibility to change the world and stop corruption. Unfortunately, in COVID-19 times the surveillance and control systems are weakened, and in the post-COVID era we will probably see many economic holes that will affect health for many years. I invite you to read the following manuscript.

Article La corrupción en salud pública: una pandemia ignorada

Big thanks to the doctor Jorge Andrés Sánchez-Duque for this helpful article.

Hyperinflation Prof. Nazar Alqahwachi.

Hyperinflation is a term to describe rapid, excessive, and out-of-control general price increases in an economy. While inflation is a measure of the pace of rising prices for goods and services, hyperinflation is rapidly rising inflation, typically measuring more than 50% per month.Mar 24, 2020

Hyperinflation Definition - Investopedia

www.investopedia.com › Economics › Macroeconomics

In developing countries in the past foreign debt was a big problem. Now in the world, the shock is called Pandemic Covid 19.

Very good answer, Dr. Martha Pantoja .

In recent years shocks that have affected the economy of different countries have been global, for example financial crises and now the pandemic. They start in a certain place in the world and spread quickly like fire.

Demand-side shocks. Economic downturn in a major trading partner. Unexpected tax increases or cuts to welfare benefits. Financial crisis causing bank lending /credit to fall. Bigger than expected rise in unemployment rates. https://www.tutor2u.net/economics/reference/demand-and-supply-side-economic-shocks

Corruption and lack of transparency

Supply Shocks. A supply shock is an event that makes production across the economy more difficult, more costly, or impossible for at least some industries. A rise in the cost of important commodities, such as oil, can cause fuel prices to skyrocket, making it expensive to use for business purposes. Natural disasters or weather events, such as hurricanes, floods, or major earthquakes, can induce supply shocks, as can man-made event like wars or major terrorism incidents. Economists sometimes refer to most supply side shocks as "technological shocks." https://www.investopedia.com/terms/e/economic-shock.asp

Demand Shocks. Demand shocks happen when there is a sudden and considerable shift in the patterns of private spending, either in the form of consumer spending from consumers or investment spending from businesses. An economic downturn in the economy of a major export market can create a negative shock to business investment, particularly in export industries. A crash in stock or home prices can cause a negative demand shock as households react to a loss of wealth by cutting back sharply on consumption spending. Supply shocks to consumer commodities with price inelastic demand, such as food and energy, can also lead to a demand shock by reducing consumers real incomes. Economists sometimes refer to demand side shocks as "non-technological shocks." https://www.investopedia.com/terms/e/economic-shock.asp

Financial Shocks, policy shocks, and technology shocks

A financial shock is one that originates from the financial sector of the economy. Because modern economies are so deeply dependent on the flow of liquidity and credit to fund normal operations and payrolls, financial shocks can impact every industry in an economy. A stock market crash, a liquidity crisis in the banking system, unpredictable changes in monetary policy, or the rapid devaluation of a currency would be examples of financial shocks.

Policy Shocks

Policy shocks are changes in government policy that have a profound economic effect. The economic impact of a policy shock might even be the goal of a government action. It could be an expected side effect or an entirely unintended consequence as well. Fiscal policy is, in effect, a deliberate economic demand shock, positive or negative, intended to smooth out aggregate demand over time. The imposition of tariffs and other barriers to trade can create a positive shock for domestic industries but a negative shock to domestic consumers.

Technology Shocks

A technology shock results from technological developments that affect productivity. The introduction of computers and Internet technology and the resulting increase in productivity across many different occupations is an example of a positive technology shock. Economists often use the term technology in a much broader sense than it is understood by most people, so that many of the above examples of economic shocks, such as a rise in energy prices, would also fall under the category of technology shocks. However, people also often refer to shocks specifically originating from the technology sector as technology shocks.

https://www.investopedia.com/terms/e/economic-shock.asp

Financial Shocks, policy shocks, and technology shocks

A financial shock is one that originates from the financial sector of the economy. Because modern economies are so deeply dependent on the flow of liquidity and credit to fund normal operations and payrolls, financial shocks can impact every industry in an economy. A stock market crash, a liquidity crisis in the banking system, unpredictable changes in monetary policy, or the rapid devaluation of a currency would be examples of financial shocks.

Policy Shocks

Policy shocks are changes in government policy that have a profound economic effect. The economic impact of a policy shock might even be the goal of a government action. It could be an expected side effect or an entirely unintended consequence as well. Fiscal policy is, in effect, a deliberate economic demand shock, positive or negative, intended to smooth out aggregate demand over time. The imposition of tariffs and other barriers to trade can create a positive shock for domestic industries but a negative shock to domestic consumers.

Technology Shocks

A technology shock results from technological developments that affect productivity. The introduction of computers and Internet technology and the resulting increase in productivity across many different occupations is an example of a positive technology shock. Economists often use the term technology in a much broader sense than it is understood by most people, so that many of the above examples of economic shocks, such as a rise in energy prices, would also fall under the category of technology shocks. However, people also often refer to shocks specifically originating from the technology sector as technology shocks.

https://www.investopedia.com/terms/e/economic-shock.asp

Very good answer ++++, Dr. Chinaza Godswill Awuch ( Financial Shocks, policy shocks, and technology shocks )

Climate change is affecting the production of agricultural food, with the consequent increase in the price of products.

Thank you very much dear Maetha.

In the last decade, economic crises have had an international effect, be they financial, raw material prices and recently the pandemic.

Very important comment. Dear Martha.

The Global economy faces a number of serious challenges in this Century, globalization has increased the interconnectedness of the economy, that´s why in recent years a regional crisis (Financial crash), became an international crisis.

Thank you Martha for this good scientific answer.

The external shocks of the 1990´s were severe for developing countries. Just now the situation is different, because external shocks could have impact in many countries, there are an interrelation financial, economic and political in the world.However, country situation for dealing with external shocks.