Recession Worse than Expected
Experts failed to predict that the US economy will move towards recession at a faster rate as the Commerce Department released its latest finding which revealed that fourth quarter growth of 2008 declined by 6.2 percent which is worse than 1940’s Great Depression.
With this gloomy economic outcome, Americans are facing more financial challenges as more businesses will implement massive layoffs.
The US Commerce Department on Friday released an astonishing result revealing that the economy moved towards recession at a faster rate during the fourth quarter of 2008 when growth declined by 6.2 percent, a far outcry from the initial forecast of only 3.8 percent.
With this gloomy economic outcome, experts warn that the condition may even get worse than what happened during the 1940’s Great Depression when most Americans and other industrialized countries experienced financial crisis aggravated by protectionism or the practice of prohibiting trade between nations.
Economists also warn that more businesses will reduce its workforce and halt production as consumer demand keeps on falling at a record low, adding that more people will be jobless for the next few months.
According to some analysts, the recession which is already in its second year, will continue to haunt the global economy for up to six more months of 2009.
In an interview, Moody's Economy.com chief economist said that the US economy fell dramatically which affected virtually all economic sectors from all regions in the country, adding that the present condition is as worse as the Great Depression.
According to an earlier report, unemployment rate, which is a reflection of the economy, rose by 7.6 percent. Experts warn that this would rise to 9 percent before the year ends.
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