Global Effects Of Global Effects On The World Economy

1942 WordsNov 24, 20148 Pages
Global Effects The 2008 financial crisis consequences strongly affected the world, from strong economies in Europe to slow growth developing countries. The world’s economy suffered a downfall that took around 2 years to recover. Europe was one of the most affected regions in the world. Government interventions, capital injections and bailouts surged in the region after the US financial market crash. The European market has affected so hard that the impact of the US financial crisis developed into a Eurozone crisis. One of the reasons the Eurozone was crushed is that the European banking system failed. Mainly because the European banks recklessly borrowed money in American markets to buy risky securities, those risky securities defaulted…show more content…
Being oil producing countries, the Middle East region had a strong currency and a stable economy due to strong oil prices. Also, helped by direct foreign investment and aid from other Arab countries, the Arab region was able to maintain strong during the crisis. Asian countries economies suffered a slow economic growth during 2008 and 2009 mainly because being export economies, and the United States netting almost 1/3 of world’s consumption. East Asia was the most affected part of Asia, specifically Singapore and Japan. Singapore GDP’s dropped from a 14% annual growth rate in 2008 to a 1.1% in 2009 and Japan annual growth rate declined an astonishing 15.2% during the first quarter of 2009. As in the USA, Asia economy have had a strong recovering road but has been positively affected by the USA uprising economy. (Adbi.org) United States The USA financial system suffered one if it’s hardest crisis in 2008. According to specialists the average house hold in USA lost an average of 5,800$ in income during the recession peak. The cost to the Federal government to stop the crisis was around 2,000$ on average for every household in America, and the combined of the decreasing costs of stock values and housing values was around 100,000$ average for every household in America. (pewtrusts.org) Gross Domestic Product: The USA gross domestic product suffered it highest decrease during the recession in the 4 quarter of
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