Global Recession

Generally speaking, a global recession is one in which many, if not most, parts of the world are in decline. While developed nations might be considered to be in recession with two-quarters showing declines in gross domestic product (GDP), a global recession cannot be measured in the same fashion, because emerging markets are typically producing higher growth rates as their domestic economies develop.

Because global economies are at different stages of development and have different levels of economic freedom, a true global recession is unlikely to encapsulate all countries at the same time.

The last global recession, which had a material impact on Western economies, took place during 2008 and 2009. This global recession was widely regarded as being due to the subprime financial crisis of 2007 and 2008, where the global financial system was at risk of total collapse.

With increased international trade and integrated economies, global recessions are more likely to include more participating countries as global expansions occur.


By looking at what giant heavy equipment–maker Caterpillar Inc. (NYSE:CAT) is saying, we’re already in a global recession. On October 22, Caterpillar reported its financial results for the third quarter of 2015. Its CEO said, “The environment remains extremely challenging…

After Emissions Scandal, What’s Next for Volkswagen Stock? Volkswagen AG (ADR) (OTC:VLKAY) former CEO, Martin Winterkorn, has been forced to resign. He may not be able to receive his 30 million euro severance agreement over the now infamous diesel engine…

A lot of stocks don’t get into the headlines, but just because they aren’t an Apple Inc. (AAPL) or Facebook, Inc. (FB), it doesn’t mean they’re not good businesses. In fact, there are two dental businesses that are a great…

In the third quarter of 2014, gross domestic product (GDP) for the eurozone region increased by 0.2% from the previous quarter, when it increased only 0.1%. The growth in the region has been very dismal. Major countries like Germany and…

More than half of the S&P 500 companies have reported earnings for the second quarter of 2012 and, thus far, the ratio of negative-to-positive forecasts has produced the highest negative reading since 2001! (Source: Wall Street Journal, July 31, 2012.)…

The debt and growth problems in the eurozone continue to dominate the headlines. The eurozone countries are looking at the impact of Greece exiting the 17-country eurozone. Greece can’t even elect a coalition government to deal with the austerity measures.…

I have to tell you, I thought it would be Spain. My thinking of the order in which the sovereign debt crisis would engulf Europe was first Greece, then Spain, then Italy. But it looks like I was wrong. Italy,…

The situation in Greece looks to be worsening. The country has already borrowed over $130 million to keep its operations going, but so far the situation appears not to have improved sufficiently to the point where the country can move…

Traders are concerned about the nuclear fallout in Japan, along with the conflict in Libya and North Africa; but, for whatever reason, the debt and growth issues in Europe appear to have been pushed to the backburner. In my view,…

Markets rallied last Thursday on the news of the potential remedy to the debt situation in Ireland that is expected to be announced sometime this week. While this will help remove some unwanted uncertainty from the market, I feel the…

It may have been a global recession when it started, but it’s certainly not a global recovery, especially for the U.S. While the Federal Reserve tinkers with the second phase of what it calls “quantitative easing” (basically, an indirect way…