Backdrop
Every recession is different, but two exceptional ones were the 2008/09 financial crisis and the 2020 COVID pandemic. Both recessions were more severe than any other post-WW II recessions.
How does the post-recession recovery compare to history? To answer this, we index key economic indicators to their pre-recession peak, and trace their evolution through time.
Analysis
Let’s look at GDP first, the most comprehensive measure of economi activity. The chart below shows
- the unprecedented depth of the economic contraction, and
- the swift initial rebound, as economic activity restarted,
- the slower expansion as the pandemic continued to linger
Why Does It Matter?
The panels below show the key GDP components. While private consumption is roughly on par with other recoveries, government spending seems a little slower.
Overall, given the depths of the recession, the recovery is proceeding remarkably swift so far.
Updates to these charts will be posted on Twitter as new data becomes available.