A questionable recovery? Reasons for economic relapse…
Posted by themarketanalyst on February 2, 2010
Below are some of the reasons why we could be at the middle point of a “W” – shaped economy and headed for an economic relapse…
- -GDP growth not coming from consumers, coming from inventories buildup based on expectations of economic recovery.
- -Withdrawal of economic stimulus programs
- -High budget deficits and tendency towards cutting of government spending
- -Risk of inflation and rise of market interest rates
- -Tendency towards protectionism policies. Also, E.U. and its members under pressure.
- -Employment creation is lagging. High unemployment, which is very important for private consumption, is still a big factor.
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