Global Recessions

A shock like no other: coronavirus rattles commodity markets

“…The pandemic has triggered an unprecedented combination of demand shock- global recession, collapse of transport activity, and the disruptive supply chains. There were 4 global recessions witnessed by us in the last 70 years in 1975, 1982, 1991, and 2009 (Kose et al 2020 ). Each instance had its own impact on the individual GDP of the nation along with the global GDP rate.…”

Another legacy of the COVID-19 pandemic: Income divergence

“…Note: Gini coefficient of per capita income (at constant 2017 PPP). Global recessions defined as in Kose, Sugawara, and Terrones (2020) . Recovery is the cumulative change over the three years starting in the year after the global recession.…”

“…The global economy has witnessed five global recessions since the Second World War: in 1975, 1982, 1991, 2009, and 2020 ( Kose, Sugawara, and Terrones 2020 ). These global recessions were associated with global per capita income contractions and typically either accompanied by or followed by financed crises: in 1975, the recession followed an oil crisis; in 1982, it followed U.S. monetary policy tightening (after yet another oil crisis); 1991’s recession was associated with exchange rate crises and deep economic contractions in the former Soviet Union; 2009 followed the global financial crisis; and the recession of 2020 was associated with the COVID-19 pandemic.…”

What do we know about small and medium enterprises’ survival in a post-global economic crisis context?

“…Each of these four episodes led to a decrease in global GDP and had negative impacts on key economic indicators including levels of industrial production, trade, capital flows, (un)employment and competitiveness (Ma et al, 2014). In many cases, these crises and global macroeconomic shocks have extended over a long-time horizon and led to economic disruptions and market slowdown, affecting the economic trajectories of regions and countries around the world (Kose et al, 2020). In particular, the global economic crisis (GEC) of 2008 has been perceived by many leading economists as the worst economic crisis since the Great Depression and the deepest post-World War II depression, affecting most of the world’s national economic systems, as well as the activities of firms (Ma et al, 2014).…”

“…In a globalised and integrated world economy, recessions have become increasingly synchronised internationally and the collapse of major economies frequently has severe consequences for the economies of other countries (Perri and Quadrini, 2018). Spreading faster than ever before and with a magnitude worse than in the pre-globalisation era (Kose et al, 2020), economic crises simultaneously affect companies at an international level, with many businesses struggling to survive. As SMEs ‘are not only the largest contributors to regional economies but also the firms most affected in times of crisis’ (Moneva-Abadía et al, 2019: p.173), it is essential to better understand determinants of SME survival in a post-global crisis context (Steiner and Steinerowska-Streb, 2012).…”