In Real terms - The US economy is going down

Thursday, 10 April 2008

US in crisis, global economy in peril: IMF

Global expansion is set to slow to 3.7 percent in 2008 amid an unfolding crisis that began in the United States, the International Monetary Fund said in its semiannual World Economic Outlook (WEO) report.

The growth estimate is a half point lower than the January WEO update, it noted.

The US economy, the world's biggest, is likely in a "mild recession" and will stagnate through much of 2009 as housing prices slide further and credit conditions remain difficult.

For the world economy, there is a 25 percent chance of dropping below three percent growth in 2008 and 2009, which according to the IMF would be the equivalent of a global recession.

"Moreover, growth is projected to remain broadly unchanged in 2009," with growth in the advanced economies likely to fall "well below potential," the 185-nation institution said.

The United States, the epicenter of the turmoil, is poised to grow a paltry 0.5 percent in 2008, the IMF said, despite a multibillion-dollar government stimulus package.

US job losses warn of recession

Fri, 04 Apr 2008 21:42:23
The US unemployment rate has continued its downfall in March, when 80,000 jobs were cut in the biggest employment decline in five years.

Based on a government report released Friday, The US surging national unemployment rate reached 5.1 percent last month compared with 4.8 percent in February, according to AFP.

The March nonfarm job losses marked the largest decline since March 2003 and the start of the Iraq war.


Obama: We are victims of 'greed'

Sat, 29 Mar 2008 21:07:19
Democratic presidential candidate Barack Obama says 'an ethic of greed' was what provoked the current economic slowdown in the US.

In a recent economic policy speech in New York, Obama said lobbyists, self-seeking businessmen and reckless Washington politicians are to blame for America's current financial strain.