The strong growth in the transition economies in 2000 is a positive and encouraging outcome; at the same time, however, it must be borne in mind that for a number of countries this represents only a meagre recovery after a long economic slump.
First: the virtually global scope of the financial and banking crisis is now clear, as are the inevitability of recession and an economic slump, the contraction in investment activity, the reduction in demand in international trade, and the possibility of serious social costs in many countries
Estimates for # indicate that, as a result of the collapse in the export earnings of developing countries brought about by the simultaneous economic slump in all the major economies, previously negative net transfers will turn positive in favour of Africa, Latin America and the least developed countries, as those countries move from trade surpluses to trade deficits
In slump or even semi-slump conditions, a higher-than-normal proportion of private savings are held in cash or its nearest equivalent (short-term treasury bills).
The biggest beneficiaries of the price slump will be the highly indebted, oil-importing countries of the eurozone: Greece, Italy, and Spain (Germany, too, is likely to benefit).
These processes had between them brought about an economic slump, with the gross domestic product shrinking by upwards of # % in two years' time, and industrial production and investment outlays falling by # % and # % respectively
These countries will go through a slump that will reduce their inflation (perhaps bringing them close to deflation) improve their competitiveness, and reduce their current-account deficits.
Africa’s economic growth slowed sharply in 2011, primarily because of political unrest in North Africa and the continued slump in the developed economies.
Perhaps that would be enough to reassure everyone that policymakers’ current acquiescence in a prolonged slump was a horrible mistake that will not be repeated.
In his 1994 book, The Curse of Rocky Colavito: A Loving Look at a 33-Year Slump, Pluto suggested that the trade, made by Indians general manager Frank Lane to blunt Colavito's popularity and end his salary demands, led to a 33-season stretch where the Indians did not finish the season within 11 games of first place, from 1960 to 1993.
For developing countries to continue to enjoy rapid economic growth, and for rich countries to avoid a slump caused, it will be necessary to develop new energy technologies.
At the global level, the situation at the end of the 1990s was marked by a sharp setback for the economies of developing countries (reflecting the East Asian financial crisis) followed by partial recovery; economic stagnation following a half-decade of slumping output in the countries in transition in Eastern Europe and the former USSR; and strong growth in North America, moderate growth in West Europe and near a standstill in the world’s second largest economy, Japan.