Economic Resilience

Economic resilience refers to an economy's ability to swiftly resume its core functions when impacted by a crisis, thereby minimising the duration during which it is unable to fulfil its core functions. This can include adapting its structures to become more resilient to future challenges.

Resilience, derived from the Latin verb "resiliere", was first introduced by Holling (1973) in ecology, who defined it as the general stability of a system and distinguished between engineering resilience, the ability of a system with one equilibrium to restore its pre-shock state quickly, and ecological resilience, the ability of a system with multiple equilibria to absorb a shock and persist in a different state. However, both definitions are static and inadequate for dynamic socio-economic systems. Consequently, the term adaptive resilience emerged to describe the positive adaptability of a system in maintaining its core functions while changing its overall structure to learn from shocks and “bounce-forward”.