Timeline of the late 2000s recession

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This article gives the timeline of the global recession of the late 2000s, which has severely hit the developed economies in the wake of the financial, banking and stockmarket turmoil of 2007 and 2008.

Contents

[edit] Definition of recession

A recession is defined as a period of two quarters of negative GDP growth. The country listed are those which officially announced to be in recession. The date indicated is that of the official announcement by the department or the public agency in charge of the measurement of the economic activity of the country. Thus, because of possible lags in the collection of statistics, it is possible that the chronological order may not correspond to that of the actual entries in recession.

It is worth noting that some developed countries such as South Korea and Australia did not enter recession (indeed Australia contracted for the last quarter of 2008 only to grow 1% for the first half of 2009).

[edit] 2008

[edit] July-September

Denmark becomes the first European economy to confirm it is in recession since the global credit crunch began. Its GDP shrinks 0.6 percent in the first quarter after an 0.2 percent contraction in the fourth quarter of 2007. In the third quarter, the economy again contracted. This time it was by 0.5 percent.[1]

The Baltic state slides into recession with a 0.9 percent fall in second-quarter GDP after a drop of 0.5 percent in the first quarter. It falls deeper into recession in the third quarter when the economy contracted 3.3 percent.[2]

Latvia joins its northern neighbor Estonia in recession as GDP falls 0.2 percent in the second quarter from the first quarter, when it fell 0.3 percent. Property markets and construction have suffered in both Baltic states.[3]

The "Celtic Tiger" slides into recession for the first time in over two decades, recording a 0.5 percent fall in second quarter GDP, following a 0.3 percent decline in the first quarter. Its last recession in 1983 saw thousands of people leave Ireland to seek work overseas.[4]

[edit] October

First Asian country to slip into a recession since the credit crisis began. Singapore's export-dependent economy shrinks annualized rate of 6.8 percent in the third quarter after a 6.0 percent contraction in the second quarter, its first recession since 2002.

[edit] November

Europe's largest economy contracted by 0.5 percent in the third quarter after GDP fell 0.4 percent in the second quarter, putting it in recession for the first time in five years.[5]

  • November 14, 2008: Italy Italy

Italy plunges into recession, its first since the start of 2005, after GDP contracts a steeper-than-expected 0.5 percent in the third quarter. Second quarter GDP dropped 0.3 percent.[6]

Hong Kong becomes the second Asian economy to tip into recession, its exports hit by weakening global demand. Third-quarter GDP drops a seasonally adjusted 0.5 percent after a 1.4 percent fall in the previous quarter.[7]

Taken as a whole the Eurozone officially slips under, pushed down by recessions in Germany and Italy for its first recession since its creation in 1999.[8][9] These 15 countries are: Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, Netherlands, Portugal, Slovenia, Spain. On January 1, 2009, Slovakia adopted the euro, and so is now part of the Eurozone. Though the Eurozone suffers from recession as a whole, Belgium, France, Greece, and Slovakia still have better growth.

  • November 17, 2008: Japan Japan

The world's second-biggest economy slides into recession, its first in seven years. Its GDP contracts 0.1 percent in the July-September quarter, as the financial crisis curbs demand for its exports. It shrank 0.9 percent in the previous quarter.[10]

The Nordic nation announces it is in recession after GDP shrinks 0.1 percent in both the second and third quarters.[11]

[edit] December

The US economy has been in recession since December 2007, the National Bureau of Economic Research announced in December 2008. The bureau is a private research institute widely regarded as the official arbiter of US economic cycles. It said a 73-month economic expansion had come to an end.[12]

In 2008, Canada had positive GDP growth in Q2 and Q3 but GDP fell by a sharp 3.4% annualized in Q4. Growth is widely expected to remain in recession territory going into 2009. Canada is the only OECD country to be out of the recession at this time.[13]

[edit] 2009

[edit] January

The UK's GDP fell by 1.5 percent in the last three months of 2008 after a 0.6 percent drop in the previous quarter after more than 16 years of continuous economic growth. GDP shrunk by a further 1.9% in the first quarter of 2009.[14]

[edit] February

The Dutch Statistics agency confirms the Netherlands are in recession since April 2008; with updated figures showing minor economic reductions in the 2nd and 3rd quarters of 2008, and a 0.9% reduction in the 4th quarter [15]

The Directorate General of Budget, Accounting and Statistics announced that its economy had contracted an unprecedented 8.36% in the fourth quarter of 2008; and also recorded 2 consecutive quarters of economic contraction, thus placing the country in a technical recession.[16]

Statistics Finland informs that Finland's gross domestic product diminished by 1.3 per cent in the last quarter of 2008 from the previous quarter. The growth slowed down already in early 2008 and in the third quarter output diminished by 0.3 per cent from the previous quarter.[17]

[edit] March

Malaysia stands on the brink of recession as falling demand hits exports and manufacturing with growth expected to reach just 0.5 percent for the year, an independent think tank said Wednesday.[18]

[edit] May

The French Institute of Statistics and Economic Studies announced that French gross domestic product shrank 1.2 percent in the first quarter of 2009 after falling by 1.5 percent in the final quarter of 2008.[19] The French economy had avoided narrowly a recession in 2008. The GDP is expected to keep shrinking in 2009.

Eurostat also reported at this time that Austria, Belgium, and Romania had all entered recession in the first quarter of 2009, with two consecutive quarters of shrinking GDP, while Lithuania, Luxembourg, and Portugal had already done so in the last quarter of 2008 and Hungary in the quarter before that.[20]

Norway's mainland GDP, which excludes the oil and gas sectors and the shipping industry, shrank 1.0 percent in the three months to March after a 0.8 percent decline in the final quarter of 2008, with recession counted as two consecutive quarterly figures showing a contraction. Mainland GDP is considered a better indicator of the Scandinavian country's economic health, since the oil and gas sector represents 25 percent of its economic growth but employs only about one percent of its working-age population. Still, Norway's total GDP, which includes the oil, gas and shipping sectors, shrank 0.4 percent in the first quarter of 2009 after 0.8 percent growth in the fourth quarter of 2008.[21]

Mexico becomes the first Latin American country to officially enter recession, having its GDP shrink 8.22% in the first quarter of 2009, after falling 1.6% in the final quarter of 2008 and Swine flu concerns. To this date, it is estimated that the Mexican domestic product will shrink 5.5% in 2009[22]. Ministry of Finances Agustin Carstens declared the country to be in recession in May 7, 2009, based on estimates, which were confirmed when the actual, real data was released on May 20 by INEGI.

Thailand’s economy shrank more than expected in the first quarter, contracting the most in a decade, plunging the nation into recession. GDP shrank 7.1% in the last quarter of 2008, followed by another shrinking of 4.2% in the first quarter of 2009. According to the Singapore branch of Macquarie Group, the Thai economy is expected to recover in the fourth quarter of 2009[23].

South Africa entered recession as the global crisis pounded demand for its main exports; GDP shrank 6.4% in the first quarter of 2009 after falling 1.8% in the last quarter of 2008. This is the first recession for South Africa in 17 years. According to forecasts, the South African domestic product is likely to shrink between 1% and 1.5% in 2009[24].

[edit] June

Switzerland officially entered a recession in the first quarter of 2009 when its economy shrank by 0.8%, after contracting 0.3% in the last quarter of 2008. The contraction was caused mainly by weakness in exports, which fell 5.4% in the quarter. Meanwhile, the Swiss watch industry had been reporting double-digit declines in watch exports for the past four months.[25]

First South American country to enter in recession.[26]

Brazil slipped into a recession in the first quarter of 2009, although currently it is expected to recover. [27]

Bulgarian authorities declare the country is officially in recession. Unemployment is rising rapidly and by September 500,000 people are expected to lose their jobs. Export is down 50%. For the first three months of 2009 GDP has shrunk by 2%. Households and small businesses are heavily in debt.[28]

[edit] July

On 2009 July 23, the Bank of Canada made comments that most media interpreted as an effective statement predicting with strong certainty that the recession is over with expected growth in GDP beginning the current quarter.[29] The Bank of Canada announced the end of the recession even though it was nascent and still dependent on government stimulus money.[29]

[edit] August

The French and German GDP both grew 0.3% in the second quarter of 2009; media rejoiced in what they labeled the end of the recession for the strongest European economies.[29]

After shrinking 4.3% during January-March, Hong Kong's GDP grew 3.3% between April and June, improving its GDP forecasts, which went from negative growth between 5.5 and 6.5% to negative growth between 4.5 and 5.5%. Still, comparing the second quarter of 2009 to the second quarter of 2008, Hong Kong's GDP shrank 3.8% in the former.[29]

Portugal leaves recession after three consecutive quarters of negative growth having its GDP recover by 0.3% in the second quarter of 2009. According to the latest estimates by the Bank of Portugal, Portuguese GDP should fall around 3.5% in 2009, which is the worst figure for the country since 1975.[29]

Even though official government sources state that Argentina's GDP will actually grow this year (and have only recognized a GDP shrinking in June of 0.4% and in July, of 0.3%; both compared to last year's same months), private consulting firms state that Argentine economy has actually been in recession since October 2008. According to them, Argentine GDP shrank 2.9% in the last quarter of 2008, 1.6% in the first quarter of 2009, and 0.6% in the second one.[29] It's widely known in Argentina that the official statistics office in charge of producing this information, INDEC, is not very reliable for trustworthy statistical information, due to the government's mismanagement of the office.

The Japanese Government informed today that after fifteen continuous months of shrinking, and after the most disastrous fall since World War II of 4% between January and March, its GDP grew 3.7% in the second quarter of 2009 in comparison with the same quarter of 2008. In annual terms, Japanese GDP grew 0.9% between April and June.[29]

Thai GDP grew 2.3% in 2009's second quarter, technically leaving recession.[29]

[edit] September

The Brazilian economy technically left the recession when GDP grew 1.9% in the second quarter of 2009 after having fallen in the first quarter of 2009 and last quarter of 2008. Growth surpassed what was expected by analysts, which was 1.6%.[29]

[edit] November

  • November 20, 2009: Mexico Mexico

The Mexican government declared that its economy technically had left the recession when the Mexican GDP grew by 2.93% in the third quarter of 2009. Mexico had been in a severe economic crisis for over a year prior to its economic rebound. The Mexican government also approved a $244 billion budget for 2010, a slight increase from 2009.[29]

  • November 30, 2009: Canada Canada

Canada begins its long and laborious recovery over its recession. Economic growth is at 0.4% after 14 months of economic stagnation.[30]

[edit] Notes

  1. ^ "Denmark in recession after first quarter contraction". EU business. 01 July 2008. http://www.eubusiness.com/news-eu/1214924551.51/. 
  2. ^ "Recession arrives in Estonia". The Baltic Times. August 13, 2008. http://www.baltictimes.com/news/articles/21072/. 
  3. ^ "Hard crash for Latvia’s housing market". Global Property Guide. January 26, 2009. http://www.globalpropertyguide.com/Europe/Latvia/Price-History. 
  4. ^ "Ireland falls into recession". Guardian. 25 September 2008. http://www.guardian.co.uk/business/2008/sep/25/recession.ireland. 
  5. ^ "German economy officially in recession". France 24. 13 November 2008. http://www.france24.com/en/20081113-german-economy-officially-recession-financial-crisis-europe. 
  6. ^ "Italy officially in recession". The Times. 10 December 2008. http://www.thetimes.co.za/Business/BusinessTimes/Article1.aspx?id=902545. 
  7. ^ "Hong Kong slides into recession". BBC. 14 November 2008. http://news.bbc.co.uk/2/hi/business/7729652.stm. 
  8. ^ "Eurozone officially in recession". BBC News. 14 November 2008. http://news.bbc.co.uk/2/hi/business/7729018.stm. 
  9. ^ "Euro zone recession confirmed". Reuters. December 4, 2008. http://www.reuters.com/article/idUKTRE4B32JK20081204. 
  10. ^ "Japan joins growing list of countries to fall into recession". Telegraph. 17 November 2008. http://www.telegraph.co.uk/news/worldnews/asia/japan/3472608/Japan-joins-growing-list-of-countries-to-fall-into-recession.html. 
  11. ^ "Sweden stumbles into recession". The Local. 28 November 08. http://www.thelocal.se/15998/20081128/. 
  12. ^ "NBER: U.S. In Recession That Began Last December". Washington Post. December 1, 2008. http://www.washingtonpost.com/wp-dyn/content/article/2008/12/01/AR2008120101365.html. 
  13. ^ "Recession in Canada now official, OECD says". Daily Commercial News. November 28, 2008. http://dcnonl.com/article/id31550. 
  14. ^ "Decline of the UK economy worsens". BBC. 24 April, 2009. http://news.bbc.co.uk/1/hi/business/8015704.stm. Retrieved 24 April, 2009. 
  15. ^ "Netherlands in recession since April" (in Dutch). Nu.nl. February 13, 2009. http://www.nu.nl/economie/1916750/nederland-sinds-april-in-recessie.html. 
  16. ^ "Taiwan in Recession". The Straits Times. February 18, 2009. http://www.straitstimes.com/Breaking%2BNews/Asia/Story/STIStory_339980.html. 
  17. ^ "Gross domestic product in decline, Finland is in recession". Statistics Finland. February 27, 2009. http://www.stat.fi/ajk/tiedotteet/2009/tiedote_003_2009-02-27_en.html. 
  18. ^ AFP (Mar 4, 2009). "Malaysia on brink of recession: think tank". Google. http://www.google.com/hostednews/afp/article/ALeqM5hN56Km5v3kp4QSVvQnSyNtauOKyA. 
  19. ^ AFP (15 May 2009). "France officially hit by recession". France 24. http://www.france24.com/en/20090515-france-officially-hit-recession-gdp-negative-growth-economic-crisis. Retrieved 15 May 2009. 
  20. ^ "Euro area and EU27 GDP down by 2.5%". Eurostat. 15 May 2009. http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/2-15052009-BP/EN/2-15052009-BP-EN.PDF. Retrieved 16 May 2009. 
  21. ^ "Norway enters recession: official data". AFP. 19 May 2009. http://www.google.com/hostednews/afp/article/ALeqM5jX8MifZEHTuQYveQ0V0gxKTZWxlw. Retrieved 10 June 2009. 
  22. ^ AFP (21 May 2009). "Mexico entered recession". La Prensa Gráfica. http://www.laprensagrafica.com/economia/internacional/34375-mexico-entro-en-recesion.html. Retrieved 9 June 2009. 
  23. ^ Yuvejwattana, Suttinee (25 May 2009). "Thai Economy Contracts More Than Forecast, Enters Recession". Bloomberg. http://www.bloomberg.com/apps/news?pid=20601087&sid=aiIg0Ah7usTY. Retrieved 10 June 2009. 
  24. ^ AFP (27 May 2009). "SAfrica enters recession as economy shrinks". Yahoo! Malaysia. http://malaysia.news.yahoo.com/afp/20090526/twl-safrica-economy-recession-4bdc673.html. Retrieved 10 June 2009. 
  25. ^ RTÉ (2 June 2009). "Switzerland enters recession in first quarter". RTÉ Business. http://www.rte.ie/business/2009/0602/switzerland.html. Retrieved 10 June 2009. 
  26. ^ http://www.lanacion.com.ar/nota.asp?nota_id=1136079&high=Chile
  27. ^ http://online.wsj.com/article/BT-CO-20090609-711704.html
  28. ^ "Bulgaria's Economy Shrinks by 5%". Standard News. 11 June 2009. http://paper.standartnews.com/en/article.php?d=2009-06-11&article=27772/. 
  29. ^ a b c d e f g h i j Recession in Canada is Over
  30. ^ Gross domestic product sees first gain in a year this quarter
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