Global Economic Crisis » economic recovery

Pace of Economic Recovery in the US is not fast enough

Stephen Cline — Wed, 10 Feb 2010 22:37:37 +0000

There are so many people who are just waiting with bated breath about news of US economic recovery. After over 2 years of financial crisis and job losses, people are just hopeful that the tide will change and something will give, so that there might be some cheer. But it seems as if people will have to wait awhile longer because there are mixed signs and signals that are emanating from the US economy and also from Europe at this point in time. There are no clear cut signals or an outbreak of conclusive optimism to indicate that we are out of the woods in terms of clear cut economic recovery.

Now it seems the OPEC is raising doubts and questions about the pace and extent of economic recovery of the US and the ability of the country to effect a turnaround. It seems there is a great deal of uncertainty about the pace and strength of US economic recovery, which could get reflected in lower than estimated oil demand. The OPEC feels that the level of economic recovery would be a function of the kind of governmental support in terms of economic stimulus package and efforts to stem the tide of unemployment which is at a whopping 10% at the current time.

Geithner feels the US Economy is Recovering

Stephen Cline — Sun, 07 Feb 2010 19:21:39 +0000

There seems to be some sense of guarded optimism and confidence that the US economy may be on the way to recovery. But the sentiments are not unequivocally positive or exuberant given the enormity of the challenge and also the unprecedented economic crisis from which the economy is still to emerge fully from. Treasury Secretary Timothy Geithner appeared on “This Week” on ABC News and said that he is of the opinion that the US economy is back on growth mode. This was on the back of better than expected employment figures that came in Friday.

But it is also clear that the way back out of the woods was still some time away given the magnitude of the problem. It does seem as if the double dip recession is receding little by little. But the employment report is seen to have thrown up some encouraging trends. As GDP increases, the economy sees better demand for goods and services. After this comes longer work weeks, which are in turn followed by greater demand for employees by the private sector, fueling more job creation within the country. All of these positive signals of economic recovery have been visible in the recent past which seems to signal a claw back from the recession of the past.