The Global Financial Crisis And The World Economy: The Impact And Policy Responses

This study investigates the macroeconomic impact of the 2008–2009 Global Financial Crisis (GFC) using crosscountry data from the International Monetary Fund (IMF) on eight key economic indicators: real GDP growth, GDP per capita (USD), GDP per capita (PPP), inflation rate, unemployment rate, current account balance, government net lending/borrowing, and government gross debt. The analysis compares three time points—2007 (pre-GFC), 2009 (GFC), and 2011 (post-GFC)—using nonparametric Mann-Whitney-Wilcoxon tests to assess statistical significance. Results show that the GFC led to a sharp and statistically significant decline in real GDP growth and inflation, alongside a significant rise in unemployment and government deficits. While GDP per capita and GDP per capita (PPP) increased during and after the crisis, these changes were not statistically significant in the GFC period, though GDP per capita showed a significant post-GFC rise. Post-crisis, some indicators partially recovered: real GDP growth and government deficits improved but did not return to pre-crisis levels; inflation returned to its pre-GFC level; and unemployment remained elevated. The findings highlight the asymmetric and lingering effects of the GFC on global macroeconomic conditions, emphasizing the limited resilience of labor markets and public finances in the face of systemic shocks.