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An interesting article from The Economist explaining why the GDP estimate, which will be released April 28th, might be dismal. Some of these factors include the disaster in Japan, snowstorms in the U.S., and renewed debt crisis fear in Europe. Analysts have forecast the first quarter growth rate to be anywhere between below 1% to 4.1%. Given these different numbers, it will be interesting to see what the actual first quarter growth rate really is when the figure is released April 28th. It will begin to show us just how hard the environment and other countries economic problems are hitting us at home.
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Very interesting and dismal. I think we need to stress to individuals the importance of spending in tough times. Since most people are stuck indoors working all the time, there is more income to be made and therefore more to spend! I especially like shopping when the weather and times are down. Vacations are also a great get away when you've got the winter blues. There need to be more ads of people spending money in the winter.
ReplyDeleteOn a more serious note, while this is alarming, I think growth will pick up again in the coming months. Winter is always a tough time, but the spring and summer offer new life to the world (cold climates this mostly affects). So do your part this summer and help the economy grow by changing your spending habits for the better
I definitely think its reasonable the global events such as the Japanese earthquake, Libyan and numerous African conflicts, and European Financial are having a profound affect on the economy in the US. I can see why consumer confidence is low, and credit crises along with lending concerns have had an adverse affect on GDP estimates. I just hope people can learn from this and previous economic meltdowns to prevent and contain future collapses. These events along with numerous mistakes on both Federal and consumers parts characterize the current financial cycle and the state of the economy.
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