Great Trade Collapse

The Great Trade Collapse, a consequence of the 2008 financial crisis, occurred between the third quarter of 2008 and the second quarter of 2009.^[1] During this time, world GDP dropped by 1% and world trade dropped by 10%. This drop in global trade was synchronized^[2] across almost every country in the world. Researchers cite three main reasons for the collapse: sudden drops in demand and supply, credit constraint, and a stifled global value chain.

References

^ The Great Trade Collapse: Causes, Consequences and Prospects by Richard Baldwin in 2009
^ The Great Synchronisation: tracking the trade collapse with high-frequency data by Joaquim Oliveira Martins and Sónia Araújo in 2009

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[1] The Great Trade Collapse: Causes, Consequences and Prospects by Richard Baldwin in 2009

[2] The Great Synchronisation: tracking the trade collapse with high-frequency data by Joaquim Oliveira Martins and Sónia Araújo in 2009

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See also

References