The Great Recession was a period of general economic decline observed in world markets during the late 2000s and early 2010s. The scale and timing of the recession varied from country to country. The recession was not felt evenly around the world. Whereas most of the world’s developed economies, particularly in North America and Europe, fell into a definitive recession, many of the newer developed economies suffered far less impact, particularly China and India whose economies grew substantially during this period. The Great Recession met the IMF criteria for being a global recession only in the single calendar year 2009.
December 2007 and ended in June 2009, and thus extended over eighteen months. The years leading up to the crisis were characterized by an exorbitant rise in asset prices and associated boom in economic demand. US mortgage-backed securities, which had risks that were hard to assess, were marketed around the world, as they offered higher yields than U. Many of these securities were backed by subprime mortgages, which collapsed in value when the U. 2006 and homeowners began to default on their mortgage payments in large numbers starting in 2007. The emergence of sub-prime loan losses in 2007 began the crisis and exposed other risky loans and over-inflated asset prices.