Economic Collapse

An economic collapse is a devastating breakdown of a national, regional, or territorial economy. It is essentially a severe economic depression characterised by a sharp increase in bankruptcy and unemployment. A full or near-full economic collapse is often quickly followed by months, years, or even decades of economic depression, social chaos, and civil unrest. Such crises have both been seen to afflict capitalist market economies and state controlled economies. However, in either case the causes and cures are quite different. The economic forecasting community is of two minds on the likely outcome of the financial crisis that erupted in 2007. Some commentators consider it to herald an international economic collapse while the majority, including governments and international organisations, predict a sluggish economy or a recessionary trend.