The 2020 Global Economic Recession is the fourth worst in history
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Adapted image with Canva. Source
Among the top five is the economic recession caused by the Covid-19 Pandemic last year, ranked fourth, as follows:
1st Place (1930-1932) The Great Depression or Crisis of 1929: at the height of 1929 the collapse of the New York Stock Exchange broke out, causing a contraction of 17.6% of the world economy, many countries of the world were severely affected with this financial catastrophe, the so-called "black Thursday" left many investors with nothing.
The crowd on the street gathered in front of the New York Stock Exchange in October 1929.
2nd Place Post-war 1945-1946: the economic recession as a result of world war II caused a contraction in the economy of 15.4%, affecting more than 70 countries of the world.
After the end of World War II, this period was characterized by the fall of European empires and the economic resurgence of two major Soviet Union and the United States.
Nazi Germany after World War II.Source
the London Stock Exchanges remained closed for more than five months and the U.S. market for more than four months.
4th Place pandemic by Covid-19 (2020): last year the global economic contraction was in the order of 6.2%, the impact of the pandemic was beyond the obvious economic crisis that many countries are still experiencing, being affected the world population not only in the economic aspect but also in the psychological, due to the mandatory social isolation implemented by all countries as a measure to prevent contagion.
According to the bibliographic sources consulted only China managed to reach a positive PBI last year, the rest of the countries presented alarming negative figures.
Hundreds of shops closed in Argentina.Souce
As can be seen, the economic contraction caused by the Covid-19 pandemic was much greater even than that generated in 2009 by the collapse of the United States housing market, which reached 2.9%, as a result of the financial crisis of 2007-2008.
To conclude, it only remains for me to stress the importance of the economic situation that the whole world is still going through, which sometimes seems to be minimized or even given as outdated.
Sources consulted:
1.-Nueva Sociedad: La crisis mundial desde la perspectiva de los países en desarrollo: algunas reflexiones
2.-BBC News: Las 14 recesiones de los últimos 150 años. Link
3.-BBC News: El Crack del 29: cómo ocurrió la peor crisis en la historia de Wall Street hace 90 años. Link
Hello friend, no doubt that for many the temporary closure of activities in different parts of the world to prevent the spread of the coronavirus pandemic was difficult to sustain and they had to close definitively. We know that under normal conditions, the economy of a country grows as the production of goods and services increases, but when we stop this process, or it does not go well, the Gross Domestic Product then stagnates or falls, affecting the economy.
Hi @emiliomoron
Certainly, the main cause of the global economic recession as a result of the Pandemic, as it happened in previous events but in a different environment.
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Hi @janettyanez In the current context of the contraction of economic growth caused by the world economic crisis, it is worth going back to fundamentals and recalling the driving forces of economic growth. It is now fifty long years since it was realized that economic growth cannot be explained by relying exclusively on the traditional factors of production of land, labor and capital, since there is an important residual factor of growth to be attributed to productivity growth driven by technical progress or innovation.
This is how @aplausos is a friend, that is one of the main keys, let us hope that the world moves towards the search for effective and pressing solutions.
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Happy Sunday!
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Greetings friend @janettyanez, excellent description of the economic recession, where COVID-19 has been the fourth highest in history, due to the change of life that the whole world had to make, and a difficult adaptation period, both for people and for the world economy, thanks for sharing the information.
Hi @chucho27
Certainly, those have been one of the leading causes of the pandemic's contraction on this list.
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Regards.
The historical account made in this interesting post @janettyanez is excellent, it shows the vulnerability of the economic system to changes in consumption patterns and market fluctuations, as well as the importance of establishing and fighting to maintain a macroeconomic balance capable of supporting these market swings.
Hence, diversification is important in terms of obtaining / generating resources, the intelligent use of available technologies (including blockchain) and the large-scale intrusion of the use of alternative and biosustainable energies.
Excellent contribution!!!!
This is a friend @karupanocitizen, despite the experiences lived in the past, this in particular leaves a great learning for society in general, let us hope that the efforts are directed towards that route.
Have a great a day!
Regards