Sharp contraction in U.S. economy
U.S. government figures showed the U.S. economy shrank in the fourth quarter of last year by 6.2 percent, far more than was expected by experts and concerned.
The figures showed that the strong decline in exports, along with the strongest decline in consumer spending in 28 years, is one of the main reasons driving this downturn, which was the government's expectations for him to be up 3.8 per cent.
As for the annual figures, it is clear that the U.S. economy grew by 1.1 percent, the slowest rate since 2001.
These results have led to the Dow Jones average down 1.6 percent in trading Friday.Warnings of a recessionBarack ObamaThe task of rescuing the economy Obama coming basic
Official figures show that consumer spending, which constitutes about two-thirds of domestic economic activity, fell by 4.3 percent in the fourth quarter of last year, the strongest quarterly decline since 1980.
With rising unemployment figures, and the growing number of property seized for failure to repay the mortgage loan, shrinking the value of investments, analysts say that Americans are turning towards the provision of all sources of cash that they own, and away from draining.
The head of the U.S. central bank (Fed) Ben Bernanke has warned Congress that unless the Government is pursuing appropriate policies, the recession that the U.S. economy is currently witnessing may continue to the year 2010.
But he also said that if the central bank and managed the administration of President Obama to restore a certain amount of financial stability, the year 2010 will be similar in the economy to heal.
The U.S. central bank may cut interest rates to almost zero in an attempt to revive the ailing economy, while President Obama's administration released a plan to stimulate the economy $ 787 billion.
U.S. government figures showed the U.S. economy shrank in the fourth quarter of last year by 6.2 percent, far more than was expected by experts and concerned.
The figures showed that the strong decline in exports, along with the strongest decline in consumer spending in 28 years, is one of the main reasons driving this downturn, which was the government's expectations for him to be up 3.8 per cent.
As for the annual figures, it is clear that the U.S. economy grew by 1.1 percent, the slowest rate since 2001.
These results have led to the Dow Jones average down 1.6 percent in trading Friday.Warnings of a recessionBarack ObamaThe task of rescuing the economy Obama coming basic
Official figures show that consumer spending, which constitutes about two-thirds of domestic economic activity, fell by 4.3 percent in the fourth quarter of last year, the strongest quarterly decline since 1980.
With rising unemployment figures, and the growing number of property seized for failure to repay the mortgage loan, shrinking the value of investments, analysts say that Americans are turning towards the provision of all sources of cash that they own, and away from draining.
The head of the U.S. central bank (Fed) Ben Bernanke has warned Congress that unless the Government is pursuing appropriate policies, the recession that the U.S. economy is currently witnessing may continue to the year 2010.
But he also said that if the central bank and managed the administration of President Obama to restore a certain amount of financial stability, the year 2010 will be similar in the economy to heal.
The U.S. central bank may cut interest rates to almost zero in an attempt to revive the ailing economy, while President Obama's administration released a plan to stimulate the economy $ 787 billion.
