8
/10 Severity
Dot-com Bubble Burst
market crash
Mar 2000
→ Oct 2002
GDP Impact
-0.8%
Countries Affected
25
Duration
30.966666666667 months
Recovery
- months
Description
The dot-com bubble was a stock market bubble caused by excessive speculation of Internet-related companies in the late 1990s. The NASDAQ Composite stock market index peaked in March 2000 before crashing.
Causes
Excessive speculation in internet stocks, overvaluation of tech companies with no profits, easy access to venture capital, irrational exuberance.
Consequences
$5 trillion in market value lost, numerous tech company bankruptcies, significant job losses in tech sector, recession in 2001.
Country Impacts
| Country | GDP Loss | Unemployment + | Duration | Recovery |
|---|---|---|---|---|
| 🇺🇸 United States | 1.0% | +2.0% | 18 mo | 24 mo |
| 🇩🇪 Germany | 0.8% | +1.5% | 15 mo | 24 mo |
| 🇬🇧 United Kingdom | 0.5% | +1.0% | 12 mo | 18 mo |
Quick Facts
- Event Type
- market crash
- Start Date
- Mar 10, 2000
- End Date
- Oct 09, 2002
- Peak Year
- 2000