How did the Great Depression impact the global economy?

How did the Great Depression impact the global economy?

The Great Depression had a significant impact on the global economy. It led to a worldwide economic downturn, with countries experiencing high unemployment rates, reduced industrial production, and a decline in international trade. The collapse of the stock market in the United States triggered a chain reaction, causing financial crises in other countries. Many nations implemented protectionist policies, such as imposing tariffs and trade barriers, which further hindered global trade. The Depression also contributed to political instability and the rise of extremist ideologies in various parts of the world. Overall, the Great Depression had a profound and lasting impact on the global economy, leading to a reevaluation of economic policies and the establishment of new international institutions to prevent future economic crises.