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Answer:
The primary reason for the economic recession in Europe following World War I was due to the decline in the economic activities in the United States.
This was because the activities and plans achieved during the war had to undergo some modifications after the war which resulted in a certain degree of economic deterioration. Although it occurred for a short while after which economic boom occurred.
The primary reason for the economic recession in Europe following World War I was the crippling reparations imposed on Germany.
What were World War I reparations?
The Treaty of Versailles of 1919 and the London Schedule of Payments of 1921 required Germany to pay about 132 billion gold marks (US$33 billion in reparations to cover civilian damage caused during the war.
These reparation payments left a legacy of debts that set the stage for a global economic disaster known as the Great Depression and eventually the second world war.
Thus, the primary reason for the economic recession in Europe following World War I was the crippling reparations imposed on Germany.
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