What was a significant consequence of the Global Financial Crisis (GFC) in 2008-2009?

The Global Financial Crisis (GFC) of 2008-2009 had wide-ranging effects on economies around the world, and one of the most significant consequences was that it caused the most severe global recession since the Great Depression. This recession was characterized by a dramatic decrease in economic activity, with many countries experiencing significant contractions in their GDPs, rising unemployment rates, and substantial declines in consumer spending and business investment.

During the GFC, financial institutions faced massive losses due to exposure to subprime mortgages and related securities, leading to a crisis of confidence that froze credit markets. As banks and financial institutions were unable or unwilling to lend, businesses could not access necessary capital for operations and expansion, leading to widespread layoffs and economic stagnation. Many countries implemented stimulus packages and monetary policy interventions to stabilize their economies, but the effects of the recession were felt globally, resulting in prolonged economic recovery periods in various nations.

Contrasting with this main consequence, the other options do not accurately reflect the broader impact of the GFC. While some regions may have experienced fluctuations in trade or job markets, the predominant theme during this period was a severe economic downturn, underscoring why the choice that highlights the recession is the correct answer.