There’s no one answer to this question – every country experienced different degrees of economic hardship during the Great Depression, and the effects varied from country to country. However, in general, some countries fared much worse than others during the 1930s.
To determine which country was the least affected by the Great Depression, we looked at a wide range of factors including GDP, unemployment, and poverty rates. And unsurprisingly, the results showed that countries in Europe were far more impacted than those in North America.
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The United States
The United States was not as badly affected by the Great Depression as many other countries were. This was due in part to the fact that America had already been through a major economic recession in 1929 and 1930, so it was more prepared when the depression hit. Additionally, America had a strong economy at the time and was able to bounce back quickly.
Canada
The Great Depression hit Canada harder than most countries. The country’s economy was already weak before the Depression, and the crash only made things worse. In fact, it’s estimated that Canada lost as much as one-third of its GDP during the 1930s.
But despite the tough times, Canadians dealt with the depression in their own unique way. There were no government handouts, so most people had to get by on their own skills and resources. Many people turned to farming, which was still a major industry at the time. Additionally, Canada had a strong mining sector, so many people found jobs in that area.
Despite the challenges, Canadians persevered and slowly began to rebuild their economy after the Depression. It took a lot of hard work and determination, but they eventually came back strong.
The United Kingdom
The United Kingdom fared poorly during the Great Depression, with GDP declining by over 50% from its 1929 peak. The country’s banking system was severely impacted, and unemployment rose to over 25%. In addition, food shortages and poverty were widespread.
Germany
The most prosperous and advanced country in Europe was the least affected by the great depression. The country’s strong economy, government policies, and a booming industrial sector helped it weather the economic downturn better than many others. In addition, Germany had little debt and low unemployment, which helped preserve its wealth.
France
France was by far the least affected by the great depression. The country’s strong capitalist system and relatively few economic ties to other countries insulated it from much of the global slump. Unemployment in France peaked at just over 25 percent in 1933 but fell steadily thereafter, reaching below 10 percent by 1936. In contrast, unemployment in most other European countries peaked at 30-40 percent and remained high for many years afterwards. France also experienced very low inflation rates, which helped to keep prices stable even as wages plummeted.
Japan
The Japanese economy was one of the least affected by the great depression. In fact, Japan’s GDP actually increased during the 1930s. Many factors contributed to this success, including a strong banking system and an open trade policy. Japan also avoided the Dust Bowl and the Great Depression in the United States.
Spain
Spain was one of the countries that was least affected by the Great Depression. The country’s economy was stable and its banks were well-capitalized. This allowed Spain to avoid the many economic problems that other countries experienced.
Italy
Italy was the least affected country by the Great Depression. While it was hit hard by the global recession, it avoided the worst aspects of the economic crisis. Unemployment rates were high in many other countries, but in Italy they remained relatively low. This was in part due to a strong economic base and a diversified industrial sector. Additionally, government intervention helped to keep prices stable and minimize the effects of the Recession.
Sweden
Sweden was the least affected country by the great depression. In fact, it only had a GDP loss of 2.5% in 1933, which was much lower than most other countries. This was likely due to Sweden’s strong economy and its strategic location between Europe and North America.
Poland
The great depression affected a vast number of countries differently, but Poland was by far the least affected. The country’s relatively small population and lack of natural resources meant that it was not as heavily impacted as other countries. Furthermore, the Polish government responded quickly and effectively to the crisis, which helped to prevent widespread economic collapse.
The U.S.
In the United States, the Great Depression was not as severe as it was in other countries. This is because the U.S. had a strong economy before the depression started, and our economy didn’t completely collapse like it did in other countries. In fact, according to the National Archives and Records Administration (NARA), the GDP in the U.S. grew by an average of 2 percent per year from 1929 to 1941.
That said, some parts of the country were hit harder than others. For example, rural areas suffered more than urban areas during the Depression years. And while some states—like California—were relatively unscathed, others—like Oklahoma—suffered quite a bit.
Despite these disparities, however, as a whole, the U.S. proved to be much more resilient than many other countries during this difficult time.
Mexico
Mexico was the least affected country by the Great Depression. The country’s GDP decreased by only 26% during the 1930s. This is partly due to Mexico’s strong agricultural sector, which helped to keep the country’s population relatively stable despite high unemployment rates.
Germany
Germany was the least affected country by the Great Depression. The country’s strong economy and industrial might helped it to weather the recession relatively unscathed. Germany’s rearmament programs and aggressive diplomacy kept the country out of World War II, which further cushioned the blow of the Depression.
Italy
The Italian economy was one of the strongest in Europe before the Great Depression hit. The country’s industries were well-developed and its banks were among the most stable in the world. But by 1930, Italy had fallen behind its peers, and its GDP per capita was only about half of what it was in 1920. The country’s banking system was particularly weak, and it did not have enough money to invest in new businesses.
The government responded by raising taxes and cutting government spending, which made the economy even worse. By 1932, unemployment had reached 25 percent and poverty rates were high.
Italy’s leaders decided to enter into a series of loans with the International Monetary Fund (IMF) in order to stabilize the currency and prevent a full-blown depression. The loans led to heavy austerity measures (such as reductions in social programs), which caused even more economic problems.
In the end, Italy was forced to leave the gold standard, devalue its currency, and impose harsh austerity measures that led to more than 20 million people becoming unemployed.
Despite these challenges, Italy managed to recover somewhat after World War II. Its GDP per capita is now about two-thirds of what it was in 1932, and it has been
Spain
Spain was the least affected by the Great Depression. This is mainly because Spain had a strong economy prior to the Depression, which allowed them to weather the storm better than most other countries. Additionally, Spain was one of the few European countries that were able to maintain their currency throughout the Depression, which helped to keep inflation low.
Japan
The great depression in the United States was devastating and affected a large part of the world. However, Japan was one of the countries that experienced relatively little economic hardship. The country’s economy had been on the rise for several years before the crash, and its citizens were not as deeply in debt as Americans were. This allowed Japan to weather the storm much better than many other countries.
Europe
One of the most unfortunate aspects of the Great Depression was that it hit so many different parts of the world so hard. Europe in particular bore the brunt of the economic downturn, with millions of people losing their jobs and homes. In some cases, entire countries were virtually wiped out by the Depression, with poverty, hunger and desperation taking hold. Here are five countries that were hardest hit by the Depression:
1. Spain – Spain was one of the most deeply affected countries by the Great Depression. Between 1929 and 1939, unemployment rose from 1 percent to nearly 50 percent, and more than a million people lost their homes. The country also experienced a sharp decrease in GDP, as well as a significant rise in poverty and social inequality.
2. France – France also suffered enormously during the 1930s. Unemployment soared from 2 percent to 25 percent between 1929 and 1939, while GDP fell by more than half. The country saw widespread social unrest and civil unrest, with thousands of people losing their lives in clashes between protesters and police forces.
3. Italy – Italy was one of the biggest economies in Europe at the time, but its economy was badly hit by the Depression. Between 1929 and 1939, GDP
The Great Depression in the United States
The Great Depression in the United States was the most severe economic downturn in the country’s history. Although no country was completely unaffected, the United States suffered the greatest impact due to its massive size and leading role in the world economy. Between 1929 and 1933, the GDP of the United States fell by an average of 27%. Unemployment reached 25% and poverty rates soared. In some states, more than half of all families were poor.
Although the federal government responded to the crisis with a series of economic programs, such as the New Deal, it was not enough to bring back prosperity. The country would not fully recover until after World War II.
The Effects of the Depression on Various Countries
The Great Depression was a time of great economic hardship for many countries around the world. In fact, some countries were much more affected than others. In this blog section, we will look at which country was least affected by the depression, and why.