COVID-19 recession

The first major sign of recession was the 2020 stock market crash, which saw major indices drop 20 to 30% in late February and March. Recovery began in early April 2020; by April 2022, the GDP for most major economies had either returned to or exceeded pre-pandemic levels^[7] and many market indices recovered or even set new records by late 2020.^[8][9][10]


The recession saw unusually high and rapid increases in unemployment in many countries. By October 2020, more than 10 million unemployment cases had been filed in the United States,^[11] swamping state-funded unemployment insurance computer systems and processes.^[12][13] The United Nations (UN) predicted in April 2020 that global unemployment would wipe out 6.7% of working hours globally in the second quarter of 2020—equivalent to 195 million full-time workers.^[14] In some countries, unemployment was expected to be around 10%, with more severely affected nations from the pandemic having higher unemployment rates.^[15][16][17] Developing countries were also affected by a drop in remittances^[18] and exacerbating COVID-19 pandemic-related famines.^[19]


The recession and the accompanying 2020 Russia–Saudi Arabia oil price war led to a drop in oil prices; the collapse of tourism, the hospitality industry, and the energy industry; and a downturn in consumer activity in comparison to the previous decade.^[20][21][22] The 2021–2023 global energy crisis was driven by a global surge in demand as the world exited the early recession caused by the pandemic, particularly due to strong energy demand in Asia.^[23][24][25] This was then further exacerbated by the reaction to escalations of the Russo-Ukrainian War, culminating in the Russian invasion of Ukraine and the 2022 Russian debt default.^[26]