Tuesday, 22 April 2008

Double dip - it gets worse

A SENIOR US leader has warned that the world's biggest economy could be heading for a 'double dip' recession.

Harold McGraw, chairman of Business Roundtable, a group of chief executives of top US companies, warned: "If, after the economic stimulus package takes effect and we get into 2009, and the ... lower interest rates do not kick in, there is a probability of a double-dip recession."

He said that there is growing nervousness that the US economy might slip back again after a brief recovery in a W-shaped "double dip recession", before predicting that the credit crunch would continue until the end of this year.

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