What is Upswing?

The upswing phase is an economic phase that is characterized by significant economic growth. This is easily perceived by rising numbers of orders and investments, an increasing utilization of capacity and a falling unemployment rate. The boom follows the upswing phase. The low phase ( depression ) precedes it.

In this lesson we will explain the main features of the upswing phase, its typical course and the upstream and downstream economic phases. Finally, we provide you with a few control questions that you can use to put your newly acquired knowledge to the test.

  • Synonym: upswing
  • English: expansion

Why is the upswing important?

According to, the upswing phase is part of the business cycle and describes the development of an economy. In order to better assess the current economic situation and to be able to make decisions on this basis, it is essential to know and to be able to identify the individual economic phases. During the upswing phase in particular, many investments are made, setting the course for the future development of companies.

Features of the boom

The upswing phase is also known as ” expansion “.

The most important features of the upswing phase are:

  • increasing order numbers,
  • an increasing production,
  • falling unemployment.

As a result, the capacities are better utilized and investments are made more often and to a greater extent. The prices rise during the expansion only slightly, the interest rates remain at a low level, but leave the first tendencies of a rise recognize. The mood in the economy is generally good and optimistic forecasts are being communicated. The steady economic growth develops into a boom over time.


In the course of the upswing, both production and consumption will improve. The national income is rising and there prevail due to the growing social welfare generally optimistic outlook. If, in addition to prices, interest rates rise and employment figures approach full employment, the upswing turns into a boom.

Features of the upswing at a glance

  • Increasing utilization of capacities
  • More investments and higher investment volumes
  • Falling unemployment
  • Optimistic sentiment among companies and households
  • Minor price increases
  • Rising national income
  • Increasing consumption among households
  • Rising wage level