Consequently, financial institutions experienced business difficulties or failed one after another in many countries, thereby aggravating financial system concern. Credit provisions from financial institutions to firms and households declined markedly, leading to a global credit contraction. Confidence, which is the most crucial element in the financial system and markets to function smoothly, was virtually lost.
This is a period in which we recorded one of our highest output growth rate as also one of the lowest. Inflation showed significant variation. We also experienced the global financial crisis, the adverse effects of which are still lingering.