Economic Booms  

Definition of an Economic Boom: A boom is a period of rapid economic expansion resulting in higher GDP, lower unemployment and rising asset prices.

Booms usually suggest the economy is overheating creating inflationary pressures. Many economic booms have been followed by a bust - economic recession or downturn. Hence the phrase Boom and Bust

Economic Boom of the 1920s

The Economic boom of the 1920s saw rapid growth in GDP, production levels and living standards. The growth was fuelled by new technologies and production processes such as the assembly line. The economic growth also caused an unprecedented rise in stock market values - share prices increased much more than GDP.

This boom came to a dramatic collapse with the Wall street Crash of 1929 on Black Thursday. This led to the Great Depression of the 1930s.

Economic Boom of the 1980s.

The 1980s was another period of relatively fast growth. In the UK, the boom years were known as the Lawson boom. This also precipitated an economic downturn.

Economic Boom in China and India

Not all economic booms have to come to an abrupt end. For example, the Chinese economy has experienced over 20 years of rapid economic expansion. The Indian economy has also experienced a period of rapid growth

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