It all started in 2007 when the word about the recession that started in the USA, the biggest recession after the Great depression in America will affect all countries and eventually will become world economic recession. This world economic recession it was initially generated by a liquidity shortfall in the American banking system. And as result of it many large financial institutions collapsed, national governments banks bankrupted, and the stock markets around the world went downhill like on a rollercoaster.
The real estate market in many areas has totally collapsed or followed the rollercoaster downfall of the stock markets. The world economic recession influenced the breakdown of many key businesses, weakened or totally destroyed the consumer buying potential, and a major decline on the general economy activities around the world.
Professionals claim that the economy recession in America has ended in 2008, but the world economy recession has not ended yet. It spreads like concentric waves and the ones to suffer the most are the developing countries and the poor countries that have become even poorer.
As the financial crisis has widened and increased, the global economy has started to choke. The global economy will eventually break down if deprived from crediting. The world’s central banks have been administering emergency measures to alleviate the strokes from the world economic recession. With a little bit of luck they might avoid a global economic catastrophe but it is unlikely that they will succeed to prevent a world economic recession. The outlook of the economies of the rich countries in Europe is equally grim as it is in USA.
The economies of the euro area are also struggling badly. The worlds economic recession has not spared even the strongest economies like in Britain, Germany, France, Italy other European countries where many people have lost their jobs. The governments in these countries can not bear the expenditure of providing social security for so many people.
Even Japan’s economy is becoming weak as a result of the world economic recession. The investments slowed and the high prices of food and fuel injured the consumer’s buoyancy. The Japanese banks are not so much entangled in the economic crisis as the banks in Europe and America, but since the other economies are in deep recession and the national valuate Jen is ascending the chances for the Japan’s exports are not so shiny and the economy is becoming gloomy as well.
Only China and some emerging economies proved themselves as flexible and resistant to the world economy recession but not many can praise with the same resistance and durability. For the small and weak economies of the developing countries the world economy recession is a hard punch and a large obstacle in their economical and financial reinforcement.
