Thursday, May 22, 2008

Economists Predict Credit Crisis Nearing an End

According to this article on CNN Money, economic experts are predicting that the credit and housing crisis will dissipate in the second half of this year. However, they are expecting the economy to continue it’s downward spiral, and the unemployment rate is likely to increase.

“A growing number of economists believe the country is on the brink of a recession or in one already, dragged down by all the problems in housing, credit and financial markets. Now 56% of the economists think the economy has started or will enter a recession this year. That's up from 45% in a survey in February. If there is a recession, it probably will be short and shallow, economists said.”

“Forecasters downgraded their projections for economic growth. They now predict the economy, which grew by 2.2% last year, will slow to 1.4% this year. That is lower than the 1.8% growth projected in February. If the new figure proves correct, it would mark the weakest growth since the last recession in 2001.”

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