2024 Global Recession Examples
Let’s look at the following List of economic recession example to better understand the concept:
Global Recession Example 1 – The 2008 economic recession
The financial crisis of 2008 marked the collapse of Lehman Brothers, one of the dominant market players in the US banking sector. This led to a decline in subprime lending in the country, which led to a decrease in bank liquidity. Credit growth was exponential for banks and financial institutions that offered credit to individuals leniently without any financial checks. As a result, the frequency of defaults increased, causing loans to become non-performing assets, causing lower liquidity.
Global Recession Example 2: The coming economic recession
Recently, there have been signs that indicate an economic recession in 2022. In addition, the Russian-Ukrainian war seems to cause interest rates to rise, slowing down economic growth, suggesting a US economic recession.
Bonus Article: 6 Easy Ways to Fix Why is My Youtube Not Working
The American market has witnessed inversions in the Treasury market since the beginning of the war. Although economists do not guarantee a recession, the observed inversion has been a major factor leading to previous periods of recession. This in turn suggests the possibility of an impending recession.
2023 US Historical Recession Example
US Historical Recession Example 1 – Pandemic Recession 2020
The Covid-19 pandemic has caused the worst recession since the Great Depression, with the US economy shrinking to a record in 2020. In April 2020, 20.8 million jobs were lost and the unemployment rate reached 14.7%. The unemployment rate remained in double digits until August 2020.
Bonus Article: 4 Genuine Reasons of European Recession Next Year
The stock market experienced what is now known as the 2020 stock market crash near the beginning of the pandemic. To combat this recession, the Federal Reserve lowered the Fed funds rate to 0% and Congress issued a $3.8 trillion bailout. In response to these measures, the economy grew by 33.1% in Q3 2020. Officially, the recession was one of the shortest in history.
US Historical Recession Example 2 – The Great Recession of 2008
The Great Recession began in December 2007 and lasted until June 2009. The subprime mortgage crisis and widespread use of derivatives triggered a bank credit crisis that then spread to the world economy.
Bonus Article: Canadian Recession to Arrive Earlier Than Expected Why ?
In 2008, GDP declined in the 1st, 3rd, and 4th quarters, falling 8.4% in the 4th quarter. In 2009, GDP fell in the 1st quarter and in October 2009 the unemployment rate reached 10%. In Q3 2009, GDP turned positive and the NBER declared the recession over.
US Historical Recession Example 3 – 2001 Dot-Com Bubble Burst Recession
Lasting only eight months, from March 2001 to November 2001, the economy contracted by 1.1% in Q1 2001 and by 1.7% in Q3 2001. This recession was caused by a boom followed by a bust in the dot-com business. Part of this boom was due to companies’ concerns about changing the dates from “19XX” to “20XX” in their computer software. This recession was further exacerbated by the 9/11 attacks.
Bonus Article: 5 Real Life Examples of Depression in Economy
US Historical Recession Example 4 – Recession 1990-1991
This recession began in July 1990 and lasted until March 1991. It was caused by the savings and loan crisis of 1989, which led to higher interest rates, and the Iraqi invasion of Kuwait, which led to the Gulf War. In the 4th quarter of 1990, GDP fell by 3.6% and in the 1st quarter of 1991 by 1.9%.
US Historical Recession Example 5 – Recession 1980-1982
There were essentially two recessions, with the first occurring from January to June 1980 and the second beginning in July 1981 and lasting until November 1982. This recession was caused in part by the Federal Reserve’s efforts to fight inflation by raising interest rates.
Bonus Article: 5 Recession Tips on How to Survive Recession
During 12 quarters, four each in 1980, 1981 and 1982, GDP was negative in six, the worst being Q2 1980 when it fell 8.0%. In November and December 1982, unemployment reached 10.8% and remained above 10% for 10 months. This recession was exacerbated by the Iranian oil embargo, which reduced U.S. oil inventories and drove up prices.
US Historical Recession Example 6 – The 1973 Nixon/OPEC Embargo Recession
Beginning in November 1973 and lasting until March 1975, this recession was initiated by the OPEC oil embargo, which caused oil prices to quadruple. Actions taken by then-President Richard Nixon were also causative factors in imposing wage and price controls that kept prices too high, and this reduced demand. Wage controls kept salaries too high, leading companies to lay off workers.
Bonus Article: 10 Best Laptops Under $500 in 2022
President Nixon also took the United States off the gold standard, causing the price of gold to soar while the value of the US dollar fell, leading to inflation. GDP fell by 2.1% in the 3rd quarter of 1973, by 3.4% in the 1st quarter of 1974, followed by declines of 3.7% in the 3rd quarter of 1973, 1.5% in the 4th quarter, and 1.5% in the 1st quarter of 1974. quarter 1975 by 4.8%.
US Historical Recession Example 7 – 1929 Great economic crisis
The difference between a recession and a depression is that during a depression, the economy contracts for several years, not a few quarters.
Bonus Article: 10 Best Scholarship in Canada to Study
Between 1929 and 1938, two recessions hit the American economy. During the first recession, between August 1929 and March 1933, GDP fell by 12.9% and unemployment peaked at 24.7%. Unemployment remained in double digits until 1939.
Bonus Article: Ukraine for Indian Students is Still Safe?
Several factors caused the Great Depression. In the spring of 1928, the Federal Reserve raised interest rates, then the stock market crashed in 1929, wiping out much of people’s life savings. This was compounded by a 10-year drought in the Midwest that devastated farmers and created the infamous Dust Bowl.
President Franklin D. Roosevelt’s New Deal boosted growth to 10.8% in 1934, 8.9% in 1935, 12.9% in 1936, and 5.1% in 1937. It lasted until the drought ended in 1937 , before the second recession was definitively ended. it was at the same time that the government increased spending at the start of World War II.
Bottom Line : Examples of Great Recession
The International Monetary Fund defines a global recession as “a decline in annual real world GDP per capita (weighted by purchasing power parity), supported by a decline or deterioration in one or more of seven other global macroeconomic indicators: industrial production, trade. , capital flows, oil consumption, unemployment rate, investment per capita and consumption per capita’.
By this definition, there have only been four global recessions since World War II: in 1975, 1982, 1991, and 2009. All lasted only a year, but the Great Recession of 2008 was by far the worst in terms of the number of countries affected and the decline in real GDP per capita.