Recession of 2009/Addendum

World

 * '''G20 leaders agree on need for fiscal stimulus

The United States

 * output falls  - gdp falls at an annualised rate of 6.2%


 * unemployment soars - the  rate  the highest for 14 years -  6.7% in November 2008.


 * deflation - consumer prices - by 1% in October and 1.7% in November


 * $800 billion support package
 * Federal Reserve buys mortgage-backed securities - Bank promises to buy up to $500 billion worth of mortgage-backed securities guarantee by Fannie  Mae and Freddie Mac and up to $100billion worth of their direct debt.


 * quantitative easing - Fed's open market purchases raise base money (the Bank's balance sheet total)  from $0.9 trillion to $2.2 trillion


 *  record national debt'' - it reaches 72.5% 0f GDP

The United Kingdom

 * output falls - gdp falls by 0.5% between second and third quarters of 2008 and by 1.5% between 3rd and 4th quarters.


 *  new budget stimulus - government proposes discretionary public expenditure of 1.1% of GDP


 * national debt reaches 43.6% of GDP

Asia

 * recession in Japan GDP fell 3.3% from Q3 to Q4 2008.
 * developing countries in recession GDP probably fell by an average annualised rate of around 15% in Hong Kong, Singapore, South Korea and Taiwan

World

 * G7 Finance Ministers endorse fiscal stimulus policy

The United States

 * Rising unemployment - 7.6% in January, 8.1% February.


 * record budget deficit -  $1.2 trillion 2009 deficit forecast by the Congressional Budget Office . (Government spending expected to rise to 23% of GDP )
 * major fiscal stimulus - proposed by President-elect Obama in his speech of 8 January.
 * Congress approves stimulus package - American Recovery and Reinvestment Act(H.R. 1) - a $839 billion stimulus package
 * Fears of Trade War – America First Steel Act, Homeland Security Comm. approves bill requiring federal agencies to use U.S. steel for public works projects, (HR 5935)

Eurozone

 * Discount rate cut from 2.4% to  2%

United Kingdom

 * Discount rate cut - from 2% to 1.0%.
 * IMF endorses policy IMF Deputy Managing Director says "There is no unique weakness in the UK economy, and we believe the measures taken ...will strengthen the economy over the medium term ".


 * Asset protection scheme

Asia

 * Japan's exports in January 56% less than in January 2008

United Kingdom

 * quantitative easing - Bank of England Reduces Bank Rate by 0.5 percentage points to 0.5% and announces £75 Billion Asset Purchase Programme.

Forecasts and outturns

 * Annual percentage growth in Gross Domestic Product


 * (forecasts are shown in italics)


 * {|class="wikitable"

!Date !Source !Country ! 2007 ! 2008 ! 2009 ! 2010 ! 2011
 * 22 December 2008
 * World Bank
 * United States
 * 2.0
 * 1.4
 * -0.5
 * 2.0
 * Japan
 * 2.1
 * 0.5
 * -0.1
 * 1.5
 * Euro area
 * 2.6
 * 1.1
 * -0.6
 * 1.6
 * China
 * 12
 * 9.4
 * 7.5
 * 8.5
 * Developing
 * 6.1
 * 5.0
 * 2.9
 * 4.7
 * World
 * 3.7
 * 2.5
 * 0.9
 * 3.0
 * 28 January 2009
 * International Monetary Fund
 * United States
 * 2.0
 * 1.1
 * -1.6
 * 1.6
 * United Kingdom
 * 3.0
 * 0.7
 * -2.8
 * 0.2
 * France
 * 2.2
 * 0.8
 * -1.9
 * 0.7
 * Japan
 * 2.4
 * -0.3
 * -2.6
 * 0.6
 * China
 * 13
 * 9
 * 6.7
 * 8
 * World
 * 5.2
 * 3.4
 * 0.5
 * 3.0
 * 7 March 2009
 * Economist Poll
 * United States
 * -2.2
 * 1.9
 * United Kingdom
 * -2.6
 * 0.5
 * France
 * -1.7
 * 0.7
 * Germany
 * -2.5
 * 0.8
 * Japan
 * -3.2
 * 0.8
 * }
 * China
 * 13
 * 9
 * 6.7
 * 8
 * World
 * 5.2
 * 3.4
 * 0.5
 * 3.0
 * 7 March 2009
 * Economist Poll
 * United States
 * -2.2
 * 1.9
 * United Kingdom
 * -2.6
 * 0.5
 * France
 * -1.7
 * 0.7
 * Germany
 * -2.5
 * 0.8
 * Japan
 * -3.2
 * 0.8
 * }
 * -2.6
 * 0.5
 * France
 * -1.7
 * 0.7
 * Germany
 * -2.5
 * 0.8
 * Japan
 * -3.2
 * 0.8
 * }
 * Germany
 * -2.5
 * 0.8
 * Japan
 * -3.2
 * 0.8
 * }
 * Japan
 * -3.2
 * 0.8
 * }
 * -3.2
 * 0.8
 * }
 * }