The Great Depression in Western Offshoots: Real GDP Data for 4 Nations

I consider the Western offshoots to be Canada, the US, Australia and New Zealand.

As in previous posts, I have given the data on real GDP loss and the duration of the Great Depression for these nations, ranked from the most severe to the least severe real output loss:

Nation | Real GDP loss | Years of Contraction
(1) Canada | -29.59% | 1929–1933
(2) US | -28.52% | 1929–1933
(3) New Zealand | -14.63% | 1930–1932
(4) Australia | -5.78% | 1929–1930
(5) US | -3.97% | 1938
(6) Australia | -2.57% | 1932

Curiously, Canada’s Great Depression (in terms of real GDP loss) was slightly worse than that of the US, something which I did not know.

The Great Depression was considerably less severe in Australia and New Zealand, and New Zealand was one of the pioneers of Keynesian fiscal stimulus to end the depression.

The data for individual countries follows.

I. The United States

Real GDP in the US
millions of 1990 international Geary-Khamis dollars
Year | GDP | Growth Rate
1928 | 794 700 |
1929 | 843 334 | 6.11%
1930 | 768 314 | -8.89%
1931 | 709 332 | -7.67%
1932 | 615 686 | -13.20%
1933 | 602 751 | -2.10%
1934 | 649 316 | 7.72%
1935 | 698 984 | 7.64%
1936 | 798 322 | 14.21%
1937 | 832 469 | 4.27%
1938 | 799 357 | -3.97%
1939 | 862 995 | 7.96%
1940 | 929 737 | 7.73%
1941 | 1 098 921 | 18.19%
1942 | 1 318 809 | 20.00%
1943 | 1 581 122 | 19.89%
1944 | 1 713 572 | 8.37%
1945 | 1 644 761 | -4.01%

Real GDP fell by -28.52% from 1929 to 1933.

A further policy-induced recession occurred in 1938 caused by Roosevelt’s fiscal and monetary contraction.

II. Canada

Real GDP in Canada
millions 1990 international Geary-Khamis $
Year | GDP | Growth Rate
1928 | 52 269 |
1929 | 52 199 | -0.13%
1930 | 50 454 | -3.34%
1931 | 42 667 | -15.43%
1932 | 39 630 | -7.11%
1933 | 36 801 | -7.13%
1934 | 40 712 | 10.62%
1935 | 43 994 | 8.06%
1936 | 46 368 | 5.39%
1937 | 50 733 | 9.41%
1938 | 52 060 | 2.61%
1939 | 55 167 | 5.96%
1940 | 62 744 | 13.73%
1941 | 71 508 | 13.96%
1942 | 84 182 | 17.72%
1943 | 87 988 | 4.52%
1944 | 91 305 | 3.76%
1945 | 88 477 | -3.09%
1946 | 87 569 | -1.02%.

Canada suffered a severe depression with a real GDP loss of -29.59% from 1929 to 1933.

III. Australia

Australian Real GDP (from Butlin)
millions 1990 international Geary-Khamis $
Year | GDP | Growth Rate
1927 | $34,716
1928 | 34 164 | -1.59%
1929 | 33 834 | -0.96%
1930 | 32 181 | -4.88%
1931 | 32 720 | 1.67%
1932 | 31 878 | -2.57%
1933 | 33 696 | 5.70%
1934 | 34 991 | 3.84%
1935 | 36 424 | 4.09%
1936 | 38 160 | 4.76%
1937 | 40 336 | 5.70%
1938 | 40 639 | 0.75%
(Maddison 2006: 452).

It appears that a recession already began in Australia in 1928 (this was bad timing), and then the Australian economy was hit by the effects of the global Great Depression in 1929.

From 1929 to 1930, the Australian economy contracted by -5.78%. There was a brief recovery in 1931, but a further recession in 1932 where GDP fell by -2.57%.

III. New Zealand

Real GDP in New Zealand
millions 1990 international Geary-Khamis $
Year | GDP | Growth Rate
1928 | 7 475 |
1929 | 7 741 | 3.55%
1930 | 7 405 | -4.34%
1931 | 6 775 | -8.50%
1932 | 6 608 | -2.46%
1933 | 7 047 | 6.64%
1934 | 7 400 | 5.00%
1935 | 7 747 | 4.68%
1936 | 9 186 | 18.57%
1937 | 9 683 | 5.41%
1938 | 10 365 | 7.04%
1939 | 10 510 | 1.39%
1940 | 10 308 | -1.92%
1941 | 9 984 | -3.14%
1942 | 11 082 | 10.99%
1943 | 11 313 | 2.08%
1944 | 11 360 | 0.41%
1945 | 11 695 | 2.94%

From 1930 to 1932 real GDP loss was -14.63%.

But New Zealand was a pioneer of Keynesian fiscal stimulus as I have shown before, and got out of the depression relatively quickly.


BIBLIOGRAPHY

Maddison, Angus. 2003. The World Economy: Historical Statistics. OECD Publishing, Paris.