At its present state, many countries are being affected by the recession, some worse than others. Here is a list of countries that have been affected the most by the recession:
United States of America
Since the start of the recession in America, the most powerful country in the world has seen their banking system falter, the housing market crash, the level of unemployment increase and inflation rise. These are not great results for the biggest economy in the world.
Being the neighbour of the most powerful country in the world is not easy, just ask Mexico who become vulnerable every time the economy of the United States suffers. Due to the current economic crisis, combined with little consumer credit and a slump in house prices, the Mexican residents are feeling the pinch of the recession. This could also affect tourism and the property market in the country.
Venezuela seemed to have escaped with recession so far with high oil prices and rich reserves. But this could come to an end if oil prices continue to drop, with the recession waiting to rear its ugly head.
Iceland is one of the countries feeling the pressure of the recession in a big way. The Icelandic banking system is no longer trusted, and the economy is in a sad state of affairs. Inflation and interest rates is also rising at an alarming rate. It is so bad, in fact, that the Icelandic national currency, the krona, is worth not much more than the ever dropping Zimbabwe dollar.
Ireland was one of the first countries in Europe to enter a recession. Their economy dropped by 0.3%, and continues to do so.
Spain officially entered recession in 2008, when the economy took a dip by 1%. This is Spain’s first recession in 15 years.
Britain seems to be suffering the most from the recession, and it has been predicted that the country will only start seeing the light towards the end of 2009. In the mean time the economy is falling, having dropped by 0.5% between July and September in 2008.
Denmark has been in recession for a while after an increase in food and fuel prices. Employment is also low, and labour productivity is falling, adding to inflation.
Germany has the largest economy in Europe, therefore a recession could cause unnecessary damage. Germany has been in recession since 2008, having suffered a 0.5% drop between July and September last year.
Italy has always had economic problems compared to the rest of Europe, brought on by huge public debt and low labour productivity. Last year this country entered recession.
Egypt is a country which relies heavily on tourism and, with the recession, the travel and tourism industry has shown a decrease. Also, food prices are soaring in the country, which has resulted in 40% of the population living in poverty.
South Africa is also feeling the effects of the recession with higher interest rates and banks tightening their belts on lending conditions. But hopefully, with the 2010 Football World Cup around the corner, investment in the country will grow, and there will also be a much needed tourism boost.
Japan has entered a recession after the economy was hit by weak exports and falling corporate investment. Japan, known as the second biggest economy after the United States, fell by 0.1% during the July-September period of 2008.
Some analysts predict the recession will affect Australia sooner rather than later.
New Zealand is suffering from its first recession since 1997. The current economic predictions have been the worst in over 20 years.