The Great Recession in the year 2008

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16Specifically, Freund (2009) defines global downturns as years when world real GDP growth is (1) below 2 percent, (2) more
than 1.5 percentage points below the previous five-year average, and (3) at its minimum relative to the previous two years and the following two years. 1975, 1982, 1991, 2001, and 2008
Freund (2009)
describes the evolution of world trade following four
previous global downturns. She finds that the size of
the decline in world trade during these episodes is
almost five times the corresponding decline in world
GDP. She also finds that, while world trade growth
resumes quickly following a global downturn, it takes
more than three years for trade to reach predownturn
Referance Freund, Caroline, 2009, “The Trade Response to Global Downturns: Historical Evidence,” Policy Research Working
Paper No. 5015 (Washington: World Bank).
What Does Recession Mean?
A prolonged decline in activity across the economy that lasts longer than a few months; recessions have a negative impact on industrial production, employment, real income, and wholesale-retail trade. Technically, a recession is said to have occurred when there have been two consecutive quarters of negative economic growth as measured by a country's gross domestic product (GDP) What Does Global Recession Mean?

An extended period of international economic downturn. Generally, the International Monetary Fund (IMF) considers a global recession as a period where gross domestic product (GDP) growth is at 3% or less. In addition to that, the IMF looks at declines in real per-capita world GDP along with several global macroeconomic factors before confirming a global recession. By Adrian Michaels and Edmund Conway 6:41PM BST 15 May 2009

A period of general economic decline; typically defined as a decline in GDP for two or more consecutive quarters. A recession is typically accompanied by a drop in the stock market, an increase in unemployment, and a...
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