Wednesday, February 10, 2010

Recession the U.S. economy

An economy is in recession official, if a country's gross domestic product of two quarters or more negative. The focus here is the negative growth. However, it is likely that any negative economic growth, but reduced or increased slightly, but not a bad experience is no longer growing. For this reason, we can still feel the economic downturn conditions, but not yet formally.

Although the U.S. economy has not formally announced that it willEconomic recession, is a large number of hidden conditions that can ultimately lead to a recession. This is the unemployment rate, inflation under the conditions of the credit crunch, housing crisis, consumer spending decreases, the main increase in a huge trade deficit, depreciation of the dollar values, weakening stocks, it is believed that the U.S. economy is working, all of these conditions proposed.

As the U.S. economy with many major economies of the world, where the broad participation of any recessionMay lead to a global recession. Therefore, any slowdown in U.S. economic growth is slowing down worldwide attention.

The U.S. government recognized that there was an economic recession also. The United States became president, they have made a positive statement, he denied the status of the U.S. economy risks recession.

The U.S. unemployment data presented in December 2007, the 4.7% growth of 5% unemployment rate. 5% of the unemployed should not be so serious,This is history, remained at 6%. However, this was considered a big leap forward, immediately issued a negative reaction in the stock market.

Slowing U.S. economic growth has given rise to many experts and bodies.

Other factors that affect the U.S. economy is currently falling property prices and tightening credit markets, somersaults, the dollar's value, the state budget deficit of credit expansion and rising energy prices, etc.

Business sentiment is alsoIt seems on the decline. Many people do not seem in the current U.S. economic confidence. International proxy wars have done a lot of damage on the U.S. economy.

The U.S. government is considering a number of measures to deal with recession conditions. The package includes tax, interest rate relief, liquidity injection, energy saving and so on. It can not be easily resolved, such as reducing business spending and so on, spiraling energy prices, big budget --Deficit, and so on

U.S. presidential election is scheduled for 2008. We are witnessing a continuing uncertainty, until they disappeared, there is one by the U.S. government a clear policy direction.

One region to remain vigilant and continue through the pressure on property prices. If this trend continues, there may be more mortgage defaults. This can be spread to other sectors of consumer goods sectors. This can add fuel to recessionary conditions.

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