Economic recovery: When will the econmic recession end?
The whole world is under the financial crisis, it all started with US in the end of December 2007. Even before taking in-charge, the Obama team has started planning to recover the economy. The recovery plan has worked well which is very well clear from the recent report on US economy and Job loss rate.
In the second quarter of 2009, the US economy has shrunk by 1% against the expected 2% and the job loss rate in various sectors is lesser than expected. Employers cut 303,000 and 443,000 jobs in May and June respectively, which were less than the 322,000 and 467,000 previously estimated. All these measurement show improvement in the US economy.
US President, Obama stressed that economic meltdown had been avoided. “We are losing jobs at less than half the rate we were when I took office. We have pulled the financial system back from the brink. While we have rescued our economy from catastrophe, we have also begun to build a new foundation for growth.”
Does it mean the recession is over! Really not, still the worst of recession has to come. The department of labour revealed that 6.7 million jobs have been lost so far due to the recession. All these people will not be able to spend money like in the past, hence the economy will continue to worse. The US Government is now forced to increase tax in the coming months to tackle the situation.
On seeing the reduction rate of Job loss rate and US econmy shrinking rate, we can expect decent growth in 2011 only when everything goes right and recover from now onwards.
Tags: economic meltdown, economic recession, financial crisis, US econmy shrinking rate, US economy, worst of recession