Low base effect in business and

economics Economics () is the social science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and intera ...

is the tendency of a small absolute change from a low initial amount to be translated into a large percentage change.Parikh, Parag. (2009). ''Value Investing And Behavioral Finance''. New Delhi: Tata McGraw-Hill
p. 120
. In the following example, focusing solely on the 33.3% growth of Company B in year 5 may give a misleading indication of the company's relative performance versus Company A.

References

Economics effects Socio-economic statistics {{economics-stub