The United States economy has slowed considerably this year from a year ago, according to a report from the Commerce Department released on Friday. Data revisions going back to 2003 also showed that the 2007-2009 recession was deeper, and the recovery to date weaker, than originally estimated.
The news comes as Congress is debating how to put the nation on a more sustainable fiscal path, with measures that some economists worry could further slow the recovery and even throw the economy back into recession.
The latest numbers were especially disappointing precisely because the economy had shrunk so much during the recession. Usually a sharp recession is followed by a sharp recovery, meaning a recovery growth rate that is far faster than the long-term average growth rate; this time around, though, output is growing at only about a third the average rate seen in the 60 years preceding the Great Recession. As a result, the country’s output is far below its potential.
http://www.washingtonpost.com/business/markets/economys-growth-in-first-half-of-this-year-likely-the-weakest-since-the-recession-ended/2011/07/29/gIQAhtAEgI_story.html?wpisrc=al_nationalThe government also revised data going back to 2003. The data show the recession was even worse than previously thought. The economy shrank 5.1 percent during the recession, which lasted from December 2007 through June 2009, compared to the earlier estimate of 4.1 percent. Both figures represent the worst downturn since World War II.
Permissions in this forum:You cannot reply to topics in this forum