About The Recession and how to get back on track
The worst year of GNP decline in Finland was 2009, and we’re now moving very slowly out of the recession. The Finnish unemployment is expected to rise to over ten percent this spring.
There are hopes for better times at the end of this year. Nevertheless, it’s going to take several years for the Finnish economy to recover. Maybe the whole decade of 2010 – 2020. There U.S. Economy is moving forward while Europe is struggling with a new problem. Airlines have been grounded for several days due to the volcano eruption in Iceland.
"We are not out of the woods yet, and there are still a lot of things that could go wrong, but things are improving," said David Wyss, chief economist at Standard & Poor's in New York.
In economics, the term recession generally describes the reduction of a country's gross domestic product (GDP) for at least 2 quarters.
The usual dictionary definition is "a period of reduced economic activity", a business cycle contraction. The United States housing market correction (a consequence of United States housing bubble) and subprime mortgage crisis has significantly contributed to a recession. U.S. employers shed 63,000 jobs in February 2008, the most in five years.
Former Federal Reserve chairman Alan Greenspan said on April 6, 2008 that "There is more than a 50 percent chance the United States could go into recession.". On October 1st, the Bureau of Economic Analysis reported that an additional 156,000 jobs had been lost in September. On April 29, 2008, nine US states were declared by Moody’s to be in a recession.
Although the US Economy grew in the first quarter by 1%, by June 2008 some analysts stated that due to a protracted credit crisis and "rampant inflation in commodities such as oil, food and steel", the country was nonetheless in a recession. The third quarter of 2008 brought on a GDP retraction of 0.5% the biggest decline since 2001. The 6.4% decline in spending during Q3 on non-durable goods, like clothing and food, was the largest since 1950.
Many economists predict the 10.1 percent unemployment rate reached in October 2009 will turn out to be the peak for this downturn, the most severe the country has suffered since the 1930s. But they say the jobless rate will decline only gradually and remain around 9.3 percent by year's end.
"The economy is stabilizing," said Mark Zandi, chief economist of Moody's Analytics. "More industries are showing signs of revival, and that is helping to support growth in more parts of the country."
The future of the American economy will depend to a great extent on consumers' attitudes, which have changed deeply and perhaps permanently in this recession, writes Prune Perromat in Huffington Post.