BUSINESS

US economy to enter 17th month of recession in Apr

Source:PTI
March 31, 2009 17:10 IST

The mega bailout packages by the Federal government seem to have failed to steer the US out of a severe economic downturn, as the country enters into recession for the 17th straight month in April, one of the longest periods since the Great Depression of 1930s.

America officially entered into recession in December 2007, according to National Bureau of Economic Research of the US.

The 17 months of recession also coincides with the G-20 meet on April 2 in London, where the world leaders would be coming together to discuss ways to tackle the meltdown.

To shore up the economy, the Federal government has already pumped in billions of dollars into the system and even unveiled a mammoth $787-billion stimulus plan.

Recently, the Obama administration came up with a public-private partnership proposal to buy toxic assets worth about $1 trillion. In addition to stimulus packages, the US government initiated unprecedented steps like buying stakes in financial institutions and guaranteeing toxic assets of certain companies.

The American GDP has contracted as much as 6.3 per cent in the fourth quarter of 2008 -- maximum in the last 26 years.

According to the Business Cycle Dating of NBER, the US economy slipped into recession in December 2007.

Source: PTI
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