Global Economic Crisis

Political scientist and noted global risk expert Ian Bremmer, who is president of the consultancy firm Eurasia Group, in a recent podcast indicated that in his view the world is now headed into a severe economic depression. He indicated in his podcast that while a uniform  formal definition  of an economic depression does not actually exist, the statistics of economic destruction emanating from the Covid-19 pandemic exceed the parameters of a recession.

Ian Bremmer pointed out in his podcast that a technical recession is defined as two quarters of consecutive negative economic growth. A depression would mirror the coronavirus  pandemic in that it has far greater depth and duration than a normal event. The global health emergency generated b y Covid-19  has resulted in a level of economic shutdown and contraction throughout  the world that far exceeds the formal definition  of a technical recession.

Though there is resistance at the early stages of this new Global Economic Crisis to label it a depression, Bremmer points out that there was also hesitation  towards labeling the coronavirus outbreak a pandemic in its early phases. The noted political scientist is convinced that we are entering the first  new economic depression in nearly one hundred years. Ian Bremmer also believes the world of the 21st century is stronger financially and economically than was the case with the Great Depression of the 1930s. This is the only positive insight he offered, in what was otherwise a prediction of economic doom and gloom.