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Weak Economy Heads Lower

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U.S. GDP growth is 1.5% for the second quarter after 2% growth in the first quarter. The slower growth shows that much of the productive capacity of the U.S. economy is not being utilized. See the graph showing the growth during the recovery after the recession of 2009 compared to the recessions in 2001, 1991, 1980, 1975, 1970. The curve is much flatter this time. Every recovery except the recovery in 1980 shows a faster rebound. Economic recoveries have taken longer over time since the postwar boom period.

Comparison between GDP and economic growth recoveries after the 2009 U.S. recession with earlier recessions

01/14/2010

The curve for recovery in economic growth after 2009 shows a long recovery period compared to earlier recessions going back to the 1970's.

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