Share this story
Close X
Switch to Desktop Site

US recovery real – but vulnerable

(Read article summary)


(Read caption) Labourers install scaffolding at a residential construction site in Hefei, Anhui Province, Feb. 18, 2012. China's home prices fell in January from December, marking the fourth monthly fall in a row and showing that the policy-driven property market downturn is deepening, which will add to worries about a hard landing in the world's second-largest economy. If the slowdown continues, the fragile US recovery could unravel.

About these ads

While the gains so far may be modest, evidence suggests the US recovery is gathering strength and could finally be on track to regaining its old form. Unemployment is at a three-year low and consumer spending is slowly starting to rise. But there are concerns that two events outside the United States could put an end to the recovery before it can get truly established.

Of the two external threats, the growing risk of recession in the eurozone is garnering the most attention. However, the possibility of a slowdown in China is equally capable of sending the US economy into another tailspin.

Earlier this week, and in the midst of some of the most violent demonstrations of the past two years, the Greek parliament passed a series of new austerity measures under pressure from the “troika” of lenders – comprising the European Central Bank, the European Union, and the International Monetary Fund, So far, Greece’s efforts to deal with a widening deficit gap have been underwhelming. Spending continues, for the most part, unabated.


Page:   1   |   2   |   3

Follow Stories Like This
Get the Monitor stories you care about delivered to your inbox.