See Recovery Only After 2009.
The U.S. economy has a good chance of starting to recover in 2010, but the rest of this year is going to be tough, according to a report released Wednesday. The UCLA Anderson School of Management's quarterly economic forecast calls for real gross domestic product to decline 6.8% in the first quarter of 2009, 4.5% in the second quarter, and another 1.7% in the third quarter.
But in 2010, the report predicts an average quarterly growth of 2.7% and an average of 4.1% in 2011. David Shulman, a senior economist with the project, wrote that he expects the current recession will span 19 to 24 months, surpassing the 1981-1982 recession, which dragged on for 16 months.
Recovery in the labor market is expected to be slower than in the broader economy, with 7.5 million jobs lost through the entire recession as the unemployment rate spikes to 10.5% in the middle of 2010. By the end of 2011, employment is forecast to total 4 million jobs below 2007's employment peak, and the unemployment rate will still be above 9%.
So, considering all these aspects, we can see the US markets and Economy can recover only after 2009.
Tags: Business , Finance , Us Markets , Nasdaq , Money Market
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