Economic Affairs

Before next financial crisis strikes, fix property market's weak spots

Singapore's household liabilities have grown since the end of the Great Recession, and much of the rise is driven by mortgage loans.

ST ILLUSTRATION : CEL GULAPA

On the upcoming 10th anniversary of the collapse of investment bank Lehman Brothers on Sept 15, 2008, which deepened the Great Recession, what lessons can we draw that might be relevant for Singapore?

The Great Recession was the longest and worst economic downturn since the depression of the 1930s. It lasted 18 months, from December 2007 to June 2009. Output, consumption, investment and employment dropped far more than the comparable figures for all other recessions since 1945. Close to nine million jobs were lost in the United States alone, in just two years. Recovery was painfully slow. It took 53 months before employment recovered to its pre-crisis level.

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A version of this article appeared in the print edition of The Straits Times on September 12, 2018, with the headline 'Before next financial crisis strikes, fix property market's weak spots'. Subscribe