US economy will manage to avoid recession
21 March 2008It looks like investors from Wall-Street have already reconciled to idea, that the largest economy of the world has entered a strip of recession. However, economic data do not confirm so gloomy estimation.
Moreover, experts mark that if the American economy will go through some next months without new shocks it will manage to avoid two-year-old recession about which economists often speak.
Analysts speak that several months can appear quite enough that have conceived effect a cycle of downturn of the Federal reserve rate of discount rate and the package of financial stimulus in cost of 152 billion dollars, accepted by the government for prevention of recession of national economy.
However, Merrill Lynch analysts, Goldman Sachs and JP Morgan continue to insist that the American economy is on the verge of recession. Unexpected deep recession on a labor market in February became an occasion for so pessimistic forecasts. Data testify that the economy of the USA is in pitiable state. Industrial growth was also strongly slowed down. And not only industrial sector, but also the market of services warns US analysts.
