Overcoming Crises of 2008 and 2020 by Developed and Developing Countries: Comparative Analysis

Abstract

Today the socio-economic development suffers from a high level of uncertainty and a large number of global changes. The purpose of the study is to compare how modern crises affected on the economies of developed and developing countries and to assess economies’ weak points and capabilities to recover. The authors analyzed the dynamics of developed and developing countries’ real gross domestic ptoduct in 2001–2021 and identified the 2 most significant crisis periods. A comparative analysis of inflation rates shows that during the pandemic inflation growth was more gradual than in 2008; more restrained in developed countries than in developing countries. A comparative analysis of gross domestic ptoduct level indicators in 2007–2021 in the developed countries, G7 countries and developing countries substantiates that the COVID-19 pandemic crisis led to less serious consequences for the world economy than the global economic crisis of 2008 due to the population and business support programs, implementated by state institutions on an unprecedented scale. According to the analyzed indicators, developing countries’ reaction to crises is more restrained, recovery in the post-crisis period is faster. However, the primary reason for this is the implementation of the global rescue program for developing economies by developed countries. The article presents recommendations on ensuring the post-pandemic recovery of the economies of developed and developing countries.