Currently the world is living a strong financial crisis caused by various factors, but one of the strongest was undoubtedly the Pandemia for COVID-19. A crisis that nobody expected or saw coming. There are currently many contingencies that are being carried out to reduce the impact of this crisis. That is why we have decided to collect some economic recessions that have been seen throughout history and talk to you briefly.
Recession of 2020
Although this is a crisis that is still seen today and has not been a recession as direct as other views in the past. The same Steam World Bank that the world economy was reduced by up to 5% due to Pandemia by COVID-19. But the current conflicts between Russia and Ukraine, tensions between countries, and the growing energy crisis could make this an even greater crisis.
World Bank economists, Naotaka Sugawara and Ayhan Kose commented on the following with respect to this crisis. “Current forecasts suggest that the world recession of Coronavirus will be the deepest from World War II, with most economies experiencing decreases in GDP per capita since 1870.”
2009 recession
This recession was given after the collapse of the United States real estate market due to the financial crisis of 2007-2008, one of the worst views in the 21st century. As a result of this crisis, several companies and banks had to be rescued by the central governments around the world, this with the aim of reducing the impact of this crisis.
As reported by the IMF (International Monetary Fund), the 2008 real estate crisis was “the most serious economic and financial collapse since the great depression of the 1930s.” However, despite this, this contraction did not feel throughout the world, and although the economies developed were the ones that suffered the most, those countries with emerging economies suffered a much lower impact during this crisis.
If compared, the United States saw a decrease in its GDP of up to 2.55 in 2009, while countries like Brazil barely decreased GDP by 0.1%, registering in parallel an increase in economic growth of up to 7.5%.
Recession from 1930 to 1932 (the great depression)
This is considered the worst financial crisis of the twentieth century, it would begin with the collapse of the New York Stock Exchange, with this several countries also suffered a huge financial cataclysm. On October 24, 1929 the prices of the shares in the New York Stock Exchange collapsed drastically.
This collapse in the stock market would be known as “Black Thursday”, there were thousands of shareholders who lost all their money in just 1 days. This collapse would drastically accelerate the effects of the existing recession, thus causing the closure of companies and industries.