Lost DecadeBack to Glossary
A lost decade is a prolonged period of drawn out recovery in an economy after a serious economic downturn or recession. Lost decades are characterized by widespread pessimism, unemployment, economic contraction, drops in real estate and a general lack of confidence in the economy. Latin America experienced a particularly brutal lost decade (La Década Perdida) following a debt crisis in the 1980s. Japan also saw its own lost decade in the 90s when its own hugely inflated asset bubble burst. Recently most of the world lived through a lost decade after the failure of the subprime market in the US set off a domino effect that almost brought the global financial system to its knees. Today, 2008’s ‘great recession’ is still affecting people’s real wealth and economic prospects.
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