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Is the Great Recession Over?
Thursday, October 29, 2009
The economy grew 3.5 percent in the third quarter, according to a government report. That's the latest indication the recession has ended.
The Associated Press reports that the increase, which is the best showing in two years, has been fuelled by government-supported spending on cars and homes.
But as the economy slowly climbs back onto its feet, is the recession over?
"It's good to have the economy growing again, we'll take it. But we don't think that rate of growth is sustainable because it is distorted by all the government stimulus," Brian Bethune, economist at IHS Global Insight, told The AP. "The challenge here is to get organic growth — growth that isn't helped by fiscal steroids."
In other financial news, the number of people claiming jobless benefits for the first time dipped by 1,000 last week to 530,000. Economists had expected a larger decline.