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Which countries were hit hardest by the Great Depression?
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Great Depression
Unemployed men standing in line outside a soup kitchen, Chicago.
The Great Depression was a global economic crisis, but its severity and duration varied significantly by country. While the downturn affected nearly every nation, the following areas were among those hit hardest:
- United States: Generally considered the epicenter of the crisis, the U.S. experienced the most severe decline. Between 1929 and 1933, industrial production fell by 47 percent, real gross domestic product (GDP) dropped by 30 percent, and unemployment exceeded 20 percent.123
- Germany: The German economy was exceptionally vulnerable due to its reliance on foreign credits, which collapsed as the Depression began. The decline in industrial production was roughly equal to that of the United States, and unemployment peaked at 6 million in 1932. This severe economic distress created the conditions that facilitated the rise of the Nazi Party.145
- Industrialized Nations: Generally, industrialized countries suffered significantly, with many experiencing unemployment rates reaching up to 25 percent in the early 1930s.2
In contrast, countries such as Japan and many nations in Latin America experienced comparatively milder downturns.16