The Great Recession was a broad decrease in national economies including gross domestic products and unemployment rates throughout the world between 2007 and 2009. It created a massive crisis in the global financial markets, as well as the banking and property investment sectors.
The recession resulted in a rise in house mortgage foreclosures throughout the world, costing millions of individuals their life savings, jobs, and properties. The housing boom in the United States occurring in the fiscal year 2006-2007, was the major and instantaneous cause of the financial crisis.
The economy progressively improved after various initiatives were taken. Three and a half years after the official crisis hit, real GDP bottomed out in the second quarter of 2009 and reached its periodical re-peak in the second quarter of 2011. The rush of money flooded over Wall Street first and foremost, restoring financial markets.
On the other hand, Australia's GDP increased by 2% in 2009 while the rest of the world struggled due to the Great Recession. During the decade 2007-2010, Australia did encounter no recession. It made significant gains than the other advanced countries due to its closeness to the growing Chinese economy.
Use of the Term in Sentences
- The Great Recession significantly hampers economic development which is always hard to retrieve.
- A critical project of a renowned company was on hold due to the Great Recession and could not resume.