The World Economic Crisis Of 2008 - 1701 Words

Assessment Task 2 - Essay Essay The world economic crisis of 2008 was the worst global crisis after the great recession of 1929-30. The most affected economies from the crisis are western European countries. The economic crisis sub sequentially lowers the growth rate of the economies. A large number of American companies incurred heavy losses and it declines in the gross domestic product widely known as GDP of the country. China plays a significant role during the economic crises (Lardy Subramanian, 2012). China was full of financial funds and reserves when the other economies were down falling due to the economic crisis. The world economic downturn of 2008-09 emerged as an opportunity for china to gain sustainable growth and†¦show more content†¦This situation is creating collusion of china with various countries. USA is also one of the economies where there is a massive competition between the Chinese and the US manufactured products (Chang, et. al., 2013). The financial crises of 2008-09 which results in falling of the USA economy had left a downfall in the stock market which results in push the economies into the situation of recession. Several sectors of economy had been affected by the crisis like real estate, financial institutions, and banks. China was emerging as a world leader in the situation of economic crisis by surviving and providing solutions to cope and regain the economic strength of the world (Chang, et. al., 2013). The Chinese government had heavy funds at the end of 2008 which proves that China had enough resources to deal with the extreme economic conditions. These all factors boost the growth and development rate of China during the financial crisis. China had accounted with heavy foreign reserves, foreign investments, and strong banking system during the time of the economic crisis. The country initiated different policies and interventions in order to minimize the negative impacts of the economic crisis (Chang, et. al., 2013). The Chinese government was so powerful at that time with low debts and high reserves that it worked on bailing out theShow MoreRelatedThe Global Financial Crisis Of Broward College920 Words   |  4 PagesResearch Paper: The Global Financial Crisis Michelle Beira Broward College There have been few financial crises in the United States. The Global Financial Crisis of 2008 to 2009 was the most recent and before that was The Great Depression of the 1930s. The Global Financial Crisis actually began in 2007 when prices of homes tanked. It not only affected the U.S. but it also affected economies overseas. 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