Monday, September 14, 2009

Outlook on the Recession

According to Reuters news service, private economists are saying the worst of the economic crisis is over. They estimate that the unemployment rate will most likely reach 10% in early 2010 and then drop very slowly over the remaining portion of the year.

They also foresee gross domestic product to expand at a 3.0% annual rate in the third quarter of 2009 and rise 2.4% in the fourth quarter. Lastly, they cite the economic growth taking place in the second half of 2009 as being due to restocking inventories that have reached record lows, a modest rebound in consumer spending, and improvements in residential investments.

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