The Great Recession of 2008-2009: Causes ... - Index of - IZA

ecession in December 2007 and is estimated to have shrunk by 2.7 per cent in 2009. 23
However, this contraction is smaller than most G20 countries and smaller than the average
for advanced economies (-3 per cent) (Figure 4).
An important theme of this paper is that, while this downturn may be the worst since World
War II, the ensuing impact of the crisis on economies across the globe has been by no means
the same. Indeed, diversity is a hallmark of the Great Recession of 2008-2009. Since the
United States went into recession at the end of 2007, most advanced economies have joined
the ranks, particularly those exposed through financial and later trade channels. But, at the
same time, others, particularly in the Asia region (namely China and India but also Australia),
have avoided a major contraction, despite their integration with the global economy. A
number of low-income countries such as Ethiopia and Uganda also continue to grow strongly
despite the downturn (Figure 5).
Figure 4: Economic growth across the world, real GDP growth (annual % change)
Source: IMF World Economic Outlook Database October 2009, data accessed February 24, 2010.
23 See the IMF World Economic Outlook Database October 2009.
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