8/8/2019 A Global Recession is a Period of Global Economic Slowdown

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A global recession is a period of global economic slowdown. The International Monetary Fund(IMF) takes many factors into account when defining a global recession, but it states that global

economic growth of 3 percent or less is "equivalent to a global recession".[1][2]

By this measure,three periods since 1985 qualify: 1990-1993, 1998 and 2001-2002.[3][4]

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y 1 Bold texty 2 See alsoy 3 Referencesy 4 External links

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==Overview== Informally, a national recession is a period of declining productivity. In a 1974

New York Times article, Julius Shiskin suggested several rules of thumb to identify a recession,which included two successive quarterly declines in gross domestic product (GDP), a measure of

the nation's output.[5]

This two-quarter metric is now a commonly held definition of a recession.In the United States, theNational Bureau of Economic Research (NBER) is regarded as the

authority which identifies a recession and which takes into account several measures in additionto GDP growth before making an assessment. In many developed nations other than USA, the

two-quarter rule is also used for identifying a recession.[6]

Whereas a national recession is identified by two quarters of decline, defining a global recession

is more difficult, because developing nations are expected to have a higher GDP growth thandeveloped nations.

[7]According to IMF, the real GDP growth of the emerging and developing

countries is on an uptrend and that of advanced economies is on a downtrend since late 1980s.

The world growth is projected to slow from 5% in 2007 to 3.75% in 2008 and to just over 2% in2009. Downward revisions in GDP growth vary across regions. Among the most affected are

commodity exporters, and countries with acute external financing and liquidity problems.Countries in East Asia (including China) have suffered smaller declines because their financial

situations are more robust. They have benefited from falling commodity prices and they haveinitiated a shift toward macroeconomic policy easing.

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The IMF estimates that global recessions seem to occur over a cycle lasting between 8 and 10

years. During what the IMF terms the past three global recessions of the last three decades,global per capita output growth was zero or negative.

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y Financial crisis of 2007-2010y The Great Depression

8/8/2019 A Global Recession is a Period of Global Economic Slowdown

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y Late-2000s recessiony 2000s energy crisisy 20072008 world food price crisis

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1. ^"The world economy Bad, or worse". Economist.com. 2008-10-09.http://www.economist.com/finance/displaystory.cfm?story_id=12381879 . Retrieved 2009-04-15.

2. ^Lall, Subir. "IMF Predicts Slower World Growth Amid Serious Market Crisis," InternationalMonetary Fund, April 9, 2008. [1]

3. ^ab"Global Recession Risk Grows as U.S. `Damage' Spreads. Jan 2008". Bloomberg.com. 2008-01-28. http://www.bloomberg.com/apps/news?pid=20601087&sid=arlKrFbn3pfY&refer=home .

Retrieved 2009-04-15.4. ^http://www.imf.org/external/pubs/ft/weo/2009/update/01/index.htm IMF Jan 2009 update5. ^ Achuthan, Lakshman (2008-05-06). "The risk of redefining recession, Lakshman Achuthan and

Anirvan Banerji, Economic Cycle Research Institute, May 7, 2008". Money.cnn.com.

http://money.cnn.com/2008/05/05/news/economy/recession/index.htm . Retrieved 2009-04-15.