The economic cycle refers to fluctuations; economic in nature; that characterize the economy; that reflects the level of activity that is characteristic of the economic entities that make up the economy. They are firms, employees, government, and other economic entities. It is the periodic increase and decrease in the level of activity of the holders of the economic factors of production, which varies from time to time. There are different phases that characterize the business cycle: expansion, peak, trough, and contraction; all of which represent the level of economic activity at a certain point in time. With regard to our economy, it is at the expansion stage, which is due to the fact that there is an increase in the level of business activity between economic entities. This is demonstrated by the decline in the level of unemployment, the increase in production levels, the increase in export volumes, and the general increase in the volume of trade activities in the economy. All this is characteristic of the expansion phase of the business cycle of the economy.

This is a positive phase, as shown by the growth of the economy, which is desirable for the owners of the factors of production. Thus, in order to sustain or improve positive outcomes, there are a number of strategies that the government can undertake. The first is to protect infant industries from the intense competition that will allow them to grow. In addition, offering incentives to firms to improve productivity will serve the economy in the best possible way. Improving infrastructures, such as transport and communication networks, will also be a good way for the government to support various positive changes in the economy. Championing more exports by joining the trade blocs will also have the effect of increasing the volume of exports, which will have a positive effect on the economy in the long run. It is therefore evident that, in the event that the government supports the various economic entities, there will be a general improvement in economic outcomes over the long term.