Dutch disease It is a concept that describes an economic p | UPSCPrelimsZone

Dutch disease

It is a concept that describes an economic phenomenon where the rapid development of one sector of the economy precipitates a decline in other sectors.

It is also often characterized by a substantial appreciation of the domestic currency.

Dutch disease is a paradoxical situation where good news for one sector of the economy, such as the discovery of natural resources (for e.g. oil, gas etc.) results in a negative impact on the country’s overall economy.

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