Is The Much Talked About Recession Over? - Blog

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Is The Much Talked About Recession Over?

Posted by Jay Hands on 20/11/2009 under Other. Currently 1 comments.

Is The Much Talked About Recession Over?

Recession is a term used to describe an economic situation when the GDP growth becomes negative. Recession could be restricted to a country or to a continent or it could engulf the whole world. The recession that started in 2007 has affected almost every nation across the world. Though some nations are fighting recession, others like India and China are feeling its heat and are facing a slowdown, where the growth is positive but less than before.

Recession has badly affected business. The stock markets have witnessed their biggest falls. Though now the situation is slowly improving and businesses and governments are again optimistic. One of the effects of this optimism is being seen in stock markets that have recovered after hitting rock bottom.

However, the big question still remains; 'Is the recession over?' There is no right answer to this as experts have different opinions. The present data regarding economic situations like GDP, unemployment rate, consumer spending, real estate statistics, and business investments show mixed results. The data is not pointing in any one direction. Though there have been improvements, still GDP growth is negative. Even though this quarter it has shown less contraction than before, still unemployment rates are quite high and the housing market is showing only minor signs of reviving. The data is also not consistent and therefore saying that the pain is over is still too early.

To say, the recession is over, we need to have positive data coming for at least a few quarters. Most experts believe that the nations need time to overcome such an acute economic crisis, and therefore expecting a sharp recovery is being too optimistic. They believe that though the early signs of recovery can be seen, still it will take a long time to overcome the situation and it is most likely going to be a U shaped recovery. There are some who fear that the fight will be a W shaped recovery, meaning that the economy will see another downturn before reaching the end of the tunnel.

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Comments

• On 14/12/2009 at 3:14pm GMT, Martin White said: Well according to <a href="http://www.recessioncounter.com/country/UnitedStates">This questionnaire</a> USA is the last country in the world, which will come out of recession. Apparently it is based solely on people’s opinions, but the fact, that basically 75% of 100% USA citizens think, that recession is not over yet and 17% of them think, that it will not even be over until 2-3 years, is not realistic. I have no idea, whether people have serious financial problems or they just don’t think realistically.

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