2000s (decade) - Economics

Economics

The most significant evolution of the early 2000s in the economic landscape was the long-time predicted breakthrough of economic giant China, which had double-digit growth during nearly the whole decade. To a lesser extent, India also benefited from an economic boom which saw the two most populous countries becoming an increasingly dominant economic force. The rapid catching-up of emerging economies with developed countries sparked some protectionist tensions during the period and was partly responsible for an increase in energy and food prices at the end of the decade. The economic developments in the latter third of the decade were dominated by a worldwide economic downturn, which started with the crisis in housing and credit in the United States in late 2007, and led to the bankruptcy of major banks and other financial institutions. The outbreak of this global financial crisis sparked a global recession, beginning in the United States and affecting most of the industrialized world.