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Economic trends and credit.(feature article)
Introduction
Global, national and local economic trends affect credit demand and quality; credit factors also impact economic growth, employment, inflation, and the fiscal surplus or deficit of federal, state and local governments. Credit demand tends to decline in a weak economy. The repayment of credit previously extended often slows during and after a recession. By contrast, firms expand investment in working capital and plant & equipment as sales improve during initial economic recovery and later growth. In addition, the quality of credit recovers during economic expansion. Economic trends are important to the credit industry. Yet, it is difficult to forecast ...
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