COVID-19 recession

Quick Facts: Who was COVID-19 recession?

Subject:

COVID-19 recession

Known for:

A global economic downturn triggered by the COVID-19 pandemic and subsequent lockdowns.

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2Day Chrono-Wiki & Primary Historical Archives

Origins & Early Life

The COVID-19 recession was a global economic recession caused by COVID-19 lockdowns. The recession began in most countries in February 2020. After a year of global economic slowdown that saw stagnation of economic growth and consumer activity, the COVID-19 lockdowns and other precautions taken in early 2020 drove the global economy into crisis. Within seven months, every advanced economy had fallen into recession. The first major sign of recession was the 2020 stock market crash, which saw major indices drop 20 to 30% in late February and March.

Career & Major Achievements

Recovery began in early April 2020; by April 2022, the GDP for most major economies had either returned to or exceeded pre-pandemic levels and many market indices recovered or even set new records by late 2020. The recession saw unusually high and rapid increases in unemployment in many countries. By September–October 2020, where every advanced & emerging economy had already fallen into a recession or depression more than 10 million unemployment cases had been filed in just the United States alone swamping state-funded unemployment insurance computer systems and processes. The United Nations (UN) in April 2020 had also predicted that global unemployment would wipe out 6.7% of working hours globally in the second quarter of 2020—equivalent to 195 million full-time workers. In some countries, unemployment was expected to be around 10%, with more severely affected nations from the pandemic having higher unemployment rates.

Enduring Legacy & Impact

Developing countries were also affected by a drop in remittances and exacerbating COVID-19 pandemic-related famines. The recession and the accompanying 2020 Russia–Saudi Arabia oil price war led to a drop in oil prices; the collapse of tourism, the hospitality industry, and the energy industry; and a downturn in consumer activity in comparison to the previous decade. The 2021–2023 global energy crisis was driven by a global surge in demand as the world exited the early recession caused by pandemic-related lockdown measures, particularly due to strong energy demand in Asia. This was then further exacerbated by the reaction to escalations of the Russo-Ukrainian War, culminating in the Russian invasion of Ukraine and the 2022 Russian debt default. Modeling by the World Bank suggests that in some regions a full recovery would not be able to be achieved until 2025 or beyond.

Chronological Milestones & Life Events

1. 2020: 2020 Milestone — The recession began in most countries in February 2020.
2. 2021: 2021 Milestone — The 2021–2023 global energy crisis was driven by a global surge in demand as the world exited the early recession caused by pandemic-related lockdown measures, particularly due to strong energy demand in Asia.
3. 2022: 2022 Milestone — This was then further exacerbated by the reaction to escalations of the Russo-Ukrainian War, culminating in the Russian invasion of Ukraine and the 2022 Russian debt default.
4. 2025: 2025 Milestone — Modeling by the World Bank suggests that in some regions a full recovery would not be able to be achieved until 2025 or beyond.

Historical Fact-Check Quiz: COVID-19 recession

True or False: “The initial signs of recession were solely attributed to the trade tensions between China and the United States.”

Answer (FALSE ❌): While trade tensions were a factor in 2019, the first major sign of the COVID-19 recession was the stock market crash that occurred in late February and March 2020.

Contemporary Figures & Related Historical Timelines

• Alan Parker — Historical peer (Died in 2020) (2020): Acclaimed English filmmaker known for genre versatility and numerous BAFTA and Golden Globe wins.
• Albert Uderzo — Historical peer (Died in 2020) (2020): Pioneering French comic artist, co-creator of the iconic Astérix series.
• Aaron Carter — Historical peer (Died in 2022) (2022): American singer and rapper known for teen pop stardom and enduring musical career.
• Alexander Vovin — Historical peer (Died in 2022) (2022): Pioneering Russian-American linguist specializing in East Asian languages, particularly Japanese.
• Aaron Beck — Historical peer (Died in 2021) (2021): Father of Cognitive Therapy and CBT, revolutionizing psychiatric treatment.
• Abdelaziz Bouteflika — Historical peer (Died in 2021) (2021): Algerian politician who served as the seventh President of Algeria from 1999 to 2019.
• A. S. Byatt — Historical peer (Died in 2023) (2023): Acclaimed English novelist, poet, and critic known for complex literary works.
• Alan Arkin — Historical peer (Died in 2023) (2023): Esteemed American actor, filmmaker, and musician with a seven-decade career.
• Alasdair MacIntyre — Historical peer (Died in 2025) (2025): Influential Scottish-American philosopher known for virtue ethics and political theory.
• Alfred Brendel — Historical peer (Died in 2025) (2025): Czech-born Austrian pianist, composer, and scholar renowned for Beethoven.

Frequently Asked Questions about COVID-19 recession