The resilience of the global art market in the face of economic crises of 2008 and 2020

Abstract

This article examines how the global art market responded to the two major economic crises of the early 21^st century. The first crisis, rooted in the banking sector, and the second, associated with the COVID-19 pandemic, both exerted profound influences on the art trade, necessitating unprecedented adaptations. Following initial periods of collapse and paralysis in both cases, the art market swiftly regained its equilibrium, with turnover values returning to pre-crisis levels. Remarkably, this recovery outpaced that of other investment forms. Traditionally conservative art market institutions opted for substantial and rapid transformations, showcasing their adaptability and openness to change. The accelerated involvement of Chinese collectors and the integration of emerging markets into the auction and gallery circuits played a pivotal role in the global art market’s recovery from the 2008 recession. The advent of the COVID-19 pandemic presented yet another crisis, almost entirely thwarting the conventional mode of operation. This dire situation promptly motivated the art market to embrace a digital revolution driven by novel technologies that fundamentally altered its previous modus operandi. Consequently, the art market not only persevered but also surged. Collectors, particularly those born in the 1980^s and 1990^s, readily embraced technological changes and became instrumental in shaping the market’s future. Despite these challenges, the positions of the two dominant art markets, the United States and the United Kingdom, remained unshaken, while the rise of a third market, China, consolidated its status in the elite ranks.