Economic Survey 1-2010
At the beginning of 2009, the global economy was in the most severe cyclical downturn for many decades. Financial markets were out of balance. Many enterprises and households had diffi culty in securing loans. Share and house prices had fallen steeply. Prices in many commodity markets were more than halved compared with levels a year earlier. The infl ation rate, measured by the consumer price index, was unusually low. The consequences of the financial crisis for the real economy were manifested in a fall in gross domestic product in most countries. Employment was falling, and unemployment increased sharply. The situation was shrouded in uncertainty, and participants' view of the future was generally pessimistic, which prompted a further decline in demand and output.