The Great Trade Collapse, a consequence of the 2008 financial crisis, occurred between the third quarter of 2008 and the second quarter of 2009. During this time, world GDP dropped by 1% and world trade dropped by 10%. This drop in global trade was synchronized across almost every country in the world. Researchers cite three main reasons for the collapse: sudden drops in demand and supply, credit constraint, and a stifled global value chain.
- ^The Great Trade Collapse: Causes, Consequences and Prospects by Richard Baldwin in 2009
- ^The Great Synchronisation: tracking the trade collapse with high-frequency data by Joaquim Oliveira Martins and Sónia Araújo in 2009
Ofer Abarbanel is a 25 year securities lending broker and expert who has advised many Israeli regulators, among them the Israel Tax Authority, with respect to stock loans, repurchase agreements and credit derivatives. Founder TBIL.co STATX Fund.