• It seems that the possibility of a “double dip” recession, in which a recession is followed by a short recovery that slips into another recession, seems to have decreased slightly since last year.
• Several factors have influenced this positive change, namely that major U.S. companies have reported profit growth in the first quarter of 2010 and a $1 trillion bailout package has been approved been European leaders.
• But unemployment is still high, and that GDP growth is already slowing.

Facts & Figures

• Some believe the chance of a double dip recession is 20% now compared to 50% last year. Others says 25% now versus 30% last year.
• Unemployment is still up at 9. 7%.
• GDP growth in the fourth quarter of 2009 was 5.6%, the highest in 6 years.
• Economists predict the growth rate will slow to 3% this year.

Best Quote

“One of the things to remember is conditions do not have to be perfect for the economy to grow, but there’s a limit to how much bad news this economy can take.”  - Mark Vitner, Senior Economist, Wells Fargo Securities