Galactic recession

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"What's your highest bounty?"
"Not much. Five thousand."
"That won't even cover fuel these days."

The galactic recession was a galaxy-wide financial crisis that erupted following the Galactic Civil War ending in 5 ABY and lasted at least until 9 ABY. With critical aid such as medical supplies and food being impacted and economical infrastructure for production and distribution under considerable pressure.

History

Background

"With confirmation of the Empire's fall coming from multiple reliable sources, tonight we project the impact on the galactic economy. While I am focusing on the Core Worlds tonight, it should be noted that upheaval on this scale will certainly trickle down to the Mid Rim and territories beyond."

―Economist Kriz Tray^[5]

After the Battle of Endor, the economist Kriz Tray discussed the possible impact the apparent fall of the Galactic Empire would hold for the galactic economy in a broadcast. Tray believed that the core issue at hand for the growing New Republic would be establishing a stabilized system of credit, with the economist further suggesting that anti-infiltration measures needed to be enacted and believing that the Empire's former contracts needed to be fulfilled to maintain the economy. Princess Leia Organa, who watched Tray's broadcast on her honeymoon, disagreed with Tray's contract point.^[5]

The recession

Following the signing of the Galactic Concordance and the end of hostilities^[1] in 5 ABY,^[2] the New Republic initially found itself unable to support the sudden shift from warfare to peace. The production and distribution of critical aid such as medical supplies and food as well as the payment of Rebel Alliance personnel before they were demobilized required significant funds, which the New Republic didn't possess. Additionally, the infrastructure that supported the galactic economy was previously ran by Imperialized worlds,^[1] such as Corellia,^[6] which found themselves under New Republic management without the knowledge of how to run it. Workers and laborers abandoned their posts due to the cessation of payments, grounding food shipments, transport services and infrastructure repairs to a halt.^[1]

As a result of the recession, bounty hunting was no longer as profitable due to bounties being significantly lower than before, leading Bounty Hunters' Guild Masters to assign them to multiple hunters at a time,^[3] a practice seen on the planet Nevarro^[7] by 9 ABY.^[8] Further issues for galactic commerce came with an increase in piracy along remote hyperspace routes^[9] around the same time.^[10] Indeed, a pirate faction known as the Pirate Nation made inroads into the Mid Rim Territories during its conflict against the New Republic,^[11] while at least one pirate faction, Gorian Shard's gang, was secretly supported by an Imperial remnant force.^[12]