Macroeconomic Consequences of the Impact of Global Financial Crises

This article explores the macroeconomic consequences of the impact of global financial crises. An analysis of financial crises shows that they have a negative impact on the country's economic growth. It has been established that financial crises have a negative effect on the growth of a country’s gross domestic product (GDP), exports and imports. Nevertheless, the overall indicator of global GDP masks significant regional differences that occurred during financial crises. For example, during the 2007–2008 financial crisis, while the more developed economies of North America, Western Europe, and Japan were severely affected – along with countries dependent on them for trade or finance, large emerging economies such as China and India resisted this trend. In particular, China’s massive financial stimulus in 2008–2009 likely prevented the global economy from sliding further into depression. In 2022, Ukraine’s GDP fell by nearly 30%. It is argued that a necessary condition for the successful functioning of any country’s economy is the availability of a competitive workforce. Although employment levels show a positive trend, significant concentrated and persistent losses remain overall. The history of past financial crises shows that a full recovery to pre-crisis trends is often a myth and leads to problems, especially for young people. In the case of Ukraine, labor market changes related to the war contribute to a high unemployment rate. The years preceding the crisis were characterized by high global growth rates, relatively stable and low inflation, and moderate unemployment in most countries. Growth was driven by significant increases in labor productivity in many countries. Combined with the further integration of developing countries into the global economy and substantial expansion of trade, this allowed prices to remain relatively stable for several years. It is concluded that since financial crises are inevitable, financial stimulus packages have been the primary strategy of governments trying to overcome the consequences of the global economic crisis.