Global recessions are highly synchronized events internationally. The fraction of countries in recession increased during the four global recessions (Figure 7). The GDP-weighted fraction of countries in recession was about 50 percent in the first three global recessions, but rose to slightly more than 80 percent in the latest episode. The unweighted fraction of countries in recession reached local peaks during the global recession years. For example, it was about 60 percent during the 2009 episode.  In all four global recessions, the fraction of countries in recession started picking up ahead of the recession year. 

Figure 7. International synchronization of recessions 


The number of countries in recession was often relatively low two to three years prior to each global recession. The 2006-07 period stands out for the historically low number of countries in recession. However, this was followed by a sharp reversal of fortune. In 2009, almost all advanced economies (35 of 36) and roughly half of EMDEs were in a recession. The degree of international synchronicity in the last global recession was the highest in the past 70 years, possibly reflecting the unusual depth of the global financial crisis and much stronger international trade and financial linkages than in earlier episodes.