US Economic Growth

This graph was taken from an article by BBC.

There was a large decline in GDP and unemployment at the end of the third quarter in 2008 and as of now into thw first quarter of 2009. The delcine in January to March was the largest since 1975. Analysist's believe that global trade will contract by 11% in 2009. Many countries are seeing falling numbers in GDP and unemployment just like the Unites States.

"In addition to the big fall in exports, the continuing decline in economic output was also caused by reduced inventory investment by firms, and lower public spending" (from BBC).

"There won't be positive growth until the second half of the year probably, but the fall in the second quarter, if it's negative at all, will be far smaller." Businesses say a 37% decline in investments as the construction markets were hit hard with a 38% decrease in investment. Consumer spending has seen a rise of 2.2% after a fall in the last two quarters of 2008. Wall Street has also been seeing signs of growth and rise in volume as federal interest rates were released. Many people need to understand that there is a line between job markets and stock markets. Usually people believe that these two markets go hand in hand, which can be the case. Currently though, there is a decreased job market and an inclining money market between the US and foreign investors. I think that we will continue to see the employment sector be hit hard by the recession, as consumer confidence rises over the next year.