<P> The Brookings Institution reported in June 2009 that US consumption accounted for more than a third of the growth in global consumption between 2000 and 2007 . "The US economy has been spending too much and borrowing too much for years and the rest of the world depended on the US consumer as a source of global demand ." With a recession in the US and the increased savings rate of US consumers, declines in growth elsewhere have been dramatic . For the first quarter of 2009, the annualized rate of decline in GDP was 14.4% in Germany, 15.2% in Japan, 7.4% in the UK, 18% in Latvia, 9.8% in the Euro area and 21.5% for Mexico . </P> <P> Some developing countries that had seen strong economic growth saw significant slowdowns . For example, growth forecasts in Cambodia show a fall from more than 10% in 2007 to close to zero in 2009, and Kenya may achieve only 3--4% growth in 2009, down from 7% in 2007 . According to the research by the Overseas Development Institute, reductions in growth can be attributed to falls in trade, commodity prices, investment and remittances sent from migrant workers (which reached a record $251 billion in 2007, but have fallen in many countries since). This has stark implications and has led to a dramatic rise in the number of households living below the poverty line, be it 300,000 in Bangladesh or 230,000 in Ghana . Especially states with a fragile political system have to fear that investors from Western states withdraw their money because of the crisis . Bruno Wenn of the German DEG recommends to provide a sound economic policymaking and good governance to attract new investors </P> <P> The World Bank reported in February 2009 that the Arab World was far less severely affected by the credit crunch . With generally good balance of payments positions coming into the crisis or with alternative sources of financing for their large current account deficits, such as remittances, Foreign Direct Investment (FDI) or foreign aid, Arab countries were able to avoid going to the market in the latter part of 2008 . This group is in the best position to absorb the economic shocks . They entered the crisis in exceptionally strong positions . This gives them a significant cushion against the global downturn . The greatest effect of the global economic crisis will come in the form of lower oil prices, which remains the single most important determinant of economic performance . Steadily declining oil prices would force them to draw down reserves and cut down on investments . Significantly lower oil prices could cause a reversal of economic performance as has been the case in past oil shocks . Initial impact will be seen on public finances and employment for foreign workers . </P> <P> The output of goods and services produced by labor and property located in the United States decreased at an annual rate of approximately 6% in the fourth quarter of 2008 and first quarter of 2009, versus activity in the year - ago periods . The US unemployment rate increased to 10.1% by October 2009, the highest rate since 1983 and roughly twice the pre-crisis rate . The average hours per work week declined to 33, the lowest level since the government began collecting the data in 1964 . With the decline of gross domestic product came the decline in innovation . With fewer resources to risk in creative destruction, the number of patent applications flat - lined . Compared to the previous 5 years of exponential increases in patent application, this stagnation correlates to the similar drop in GDP during the same time period . </P>

What was the impact to bank savings accounts following the 2008-09 recession