Thursday, October 29, 2009
US Economy Exits Recession???
After four consecutive quarters of contraction the US economy has shown a positive GDP growth of 3.5% in the third quarter of 2009. Even though the article states we have exited the recession, US treasury secretary, Timothy Geithner, has acknowledged that the recession remains very much alive for millions of Americans who are still struggling with the financial downturn. The rebound in GDP was primarily led by an increase in consumer spending. However, many analysts expect the economic momentum to slow down in the fourth quarter. Nonetheless, I hope this upturn ignites some optimism among Americans and spur us further to pull ourselves out of this economic slump.
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It is great to see that consumer spending, which counts for two-thirds of the US economic activity, is gradually rebounding this quarter up to 3.4% after a 0.9% drop in the second quarter of the year. I think the government's decision to introduce the "cash-for-clunkers" program was a great way to help increase consumer spending and get Americans to start purchasing again. On the other hand, it is also kind of confusing but good for debate on whether we truly are or are not out of the recession. While some experts say we are beginning to come out of the recession finally, this article claims that we will not be officially out of the recession until it has been declared by the NBER.
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