Some of my friends and colleagues are busy trying to figure out what could be the shape of the most eagerly awaited recovery. The debate is whether we are going to see a V, W, and U or prolonged I__I shaped recovery.
There are some who are suggesting we are probably going to see a V shaped recovery then there are those who are predicting a U or prolonged U shaped recovery and yes there others who believe we might see a W shaped recovery. Boy! Go Figure. Someone has to be right but then I wonder isn’t this all a bit premature? Aren’t we getting ahead of ourselves on making such prognoses or am I simply being Silly?
Let’s find out, shall we?
The shape of the current economy could probably give us some clues as to what the shape of the recovery might be or at the least we could rule out some. To get a good estimate of the health of the economy let us look at some of headline news during the week ending Friday, the 15th May 09.
We will start with the numbers out from the European Union.
According to European Union’s statistic office the GDP in the 16 member Europe region fell by over 2.5% from the fourth quarter, the steepest decline in over 12 years. This was above the market expectation of continue reading »