US Economy Shrinks at Fastest Pace Since 1982
According to the latest government data, US GDP shrank by over 6% in the fourth quarter which is the fastest since 1982, with corporate profits plunging by $120 billion and the number of people collecting unemployment benefits rising to 5.56 million.
However, the economy has shown signs of improvement over the past few weeks as separate reports have shown an increase in home sales and even retail sales. Economists have been desperately trying to increase consumer confidence in the market to give the much needed boost to the economy. Overall, there have been some signs of a recovery as of late.
Of course, everyone unanimously agrees that there is still a lot more to be done until the economy does a genuine turnaround and begins to grow again. Increasing job layoffs and the worsening mortgage crisis are a couple of the biggest worries for the economy. It is absolutely imperative for the Obama administration to try and control unemployment and foreclosures as without that, the economy will continue to shrink at record pace.
