What does macroeconomic mean?
Macroeconomic describes matters affecting an economy as a whole, including inflation, unemployment, economic growth, interest rates, taxation, trade, and national fiscal policy. The term is used by governments, central banks, businesses, economists, and journalists to explain developments that affect many people and organizations rather than one household, company, or market. A macroeconomic problem is typically large in scale, while a macroeconomic policy is designed to influence the overall performance of an economy. For example, a government may lower interest rates as part of a macroeconomic strategy intended to encourage investment and employment. The word is related to macroeconomics, the branch of economics concerned with aggregate economic activity. It is usually formal, though it is widely understood in news and public discussion. Its opposite, microeconomic, focuses on individual decision-makers and the behaviour of particular markets.
Relating to the economic conditions, policies, or performance of an entire country, region, or the global economy.
"The government introduced tax relief in response to a prolonged period of weak macroeconomic performance."
Commonly used before words such as conditions, policy, outlook, and performance.
A macroeconomic issue, condition, or policy considered as a whole; also, an analysis of large-scale economic activity.
"The financial crisis reshaped the macroeconomic outlook for countries around the world."
Less common as a noun than as an adjective, and usually encountered in formal or specialist contexts.
Macroeconomics zooms out: it tracks the forces shaping an entire economy, from inflation and unemployment to growth and trade.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does macroeconomic come from?
The adjective combines the combining form macro-, meaning large in scale, with economic, derived from economy and ultimately from Greek oikonomia, the management of a household. In modern usage, macro- has come to signal broad or large-scale analysis, especially in contrast to micro-, meaning small or focused on individual units. The related noun macroeconomics developed during the twentieth century as economics increasingly divided into the study of aggregate economic activity and the study of individual markets and decision-makers.
Related word forms
How macroeconomic is actually used
The adjective is commonly used with terms such as conditions, policy, outlook, and indicators. It is generally formal and is especially common in economics, business, and financial journalism.
Easily confused with macroeconomic
Macroeconomic concerns the economy as a whole, whereas microeconomic analysis focuses on the behaviour of individual consumers, firms, and markets.