Natural Factors:
- Weather cycles cause fluctuations in agricultural output which in turn cause instability in the economies, especially those economies which are mainly agrarian. In the years when there are draughts or excessive floods, agricultural output is badly auected.
- With reduced agricultural output, incomes of farmers fall and therefore they reduce their demand for industrial goods.
- Reduced production of food products also pushes up their prices and thus reduces the income available for buying industrial goods.
- Reduced demand for industrial products may cause industrial recession.
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