02-09-2017, 12:25 PM
A global recession is the recession that affects many countries around the world, ie a period of global economic slowdown or a decline in economic output. The International Monetary Fund defines a global recession as "a decline in real annual per capita world GDP (weighted purchasing power parity weighting), backed by a decline or worsening of one or more of the seven other global macroeconomic indicators: Industrial production , trade, capital flows, oil consumption, the unemployment rate, per capita investment and per capita consumption. "
According to this definition, since World War II there have been only four global recessions (in 1975, 1982, 1991 and 2009), all of which last only a year (although the 1991 recession would have lasted until 1993 if the IMF had used the exchange normal world GDP per capita weighted by weighting, instead of world real GDP per capita weighted by purchasing power parity). The global recession of 2009, also known as the Great Recession, was by far the worst of the four post-war recessions, both in terms of the number of countries affected and the decline in real GDP per capita.
Prior to April 2009, the IMF held that a global annual rate of real GDP growth of 3.0 percent or less was "equivalent to a global recession." With this measure, there were six global recessions since 1970: 1974-75, 1980-83, 1990-93, 1998, 2001-02 and 2008-09.
According to this definition, since World War II there have been only four global recessions (in 1975, 1982, 1991 and 2009), all of which last only a year (although the 1991 recession would have lasted until 1993 if the IMF had used the exchange normal world GDP per capita weighted by weighting, instead of world real GDP per capita weighted by purchasing power parity). The global recession of 2009, also known as the Great Recession, was by far the worst of the four post-war recessions, both in terms of the number of countries affected and the decline in real GDP per capita.
Prior to April 2009, the IMF held that a global annual rate of real GDP growth of 3.0 percent or less was "equivalent to a global recession." With this measure, there were six global recessions since 1970: 1974-75, 1980-83, 1990-93, 1998, 2001-02 and 2008-09.