The early recession 2001 was mainly observed in western countries affecting the European Union largely during the period of 2001 2003 recession. The U S economy was badly affected during recession 2002 followed by Canada and Australia. Country like Russia did not experience economical prosperity since 1990 observed some faint signs of improvisation. The recession phase touched many growing and developed countries including Japan and England. Most countries were hiding the lean phase of economy and economists of those countries were quite hopeful for the improvisation but things did not settle that way and the lean phase of recession continued further affecting badly to the economies of the country. The recession has largely affected the life of the people. Most work forces were retrenched from various commercial and industrial sector and they were left with no means to survive. Many of them had to opt for inferior jobs to support their existence. The markets were flooded with the goods but the purchasing power was missing. As a result, the production houses had to put a full stop on further manufacturing. Many economists object to characterizing it as a recession in the U S since there were not two consecutive periods of negative growth. During past recessions, the most severe economic impact invariably has fallen on the growing children. The child poverty increased double than the general population. During 2001 recession, the child poverty remained essentially flat while non elderly adult poverty increased remarkably. The recession that started during 2001 differs obviously from the earlier recessions. The current recession has nearly broken from the normal historical pattern. The recession that began since 2001 has continued its span till today and affected badly on the growing economy of all the countries. The vastly populated countries are affected more from the recession. The countries depending on other source for their economy are suffering the most such as China and other far eastern countries. There are countries highly dependent on their parent countries are the worst victims of the bad patch than others. Countries like Pakistan, Philippines and other far eastern countries are mainly depending on U S. They cannot survive without the financial aids from U S and development in these regions is just negligible. Their economy is never developed due to the readymade aid available from their principal. Due to the failure in financial sector, the unemployment has increased throughout the world.

The standard way of defining a recession looks at the value of economic output adjusted for inflation. This measure is known as real gross domestic product. Two consecutive quarters of decline in RGDP is generally considered to be a recession. U S was affected by the recession in the first three quarters of 2001 and the economy started tumbling since then. The recent state of recession is the ultimate result of that tumbling economic turmoil and that has affected many other countries those who were attached with the U S economy.