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World economic crisis

DaoisteE6tDX
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Chapter 1 - World economic crisis

What is the economic crisis

The COVID-19 recession is a global economic recession caused by the COVID-19 pandemic. The recession began in most countries in February 2020.

COVID-19 recession

IMF World Economic Outlook January 2021 Real GDP growth rate (map).svg

Map showing real GDP growth rates in 2020, recorded by the International Monetary Fund as of 26 January 2021; countries in brown are those that have faced a recession.

Date

February 2020–present

Type

Global recession

Cause

COVID-19 pandemic– liquidity induced market instability and global lockdowns limiting supply

Outcome

2020 stock market crash

Sharp rise in unemployment

Collapse of the tourism industry

Collapse of the hospitality industry

Collapse of the price of oil

Collapse of small businesses

Destabilization and collapse of the energy industry

Increase in government debt

Increase in economic inequality between rich and poor

Major downturn in consumer activity

Market liquidity crisis

Protests, riots and civil unrest

Trade disruption & shortages

Increased inflation

2022 stock market decline