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Recession? Not Yet.


Despite all the economic doom and gloom, we’re actually not in a recession. Turns out, the economy grew 0.6% last quarter. A recession is when the gross domestic product (GDP) goes into the red for two consecutive quarters.

Of course, 0.6% growth is only good news when you’re expecting negative growth. The economy’s growth in the final quarter of last year was also just 0.6% which means, while we’re not in a recession, our economy is stagnating. Our economy is struggling with the bad housing market (the number of foreclosures increased for the seventh consecutive quarter) and slowing consumer spending due to declining consumer confidence (which is at a five year low).

Given the grim numbers, the fact that we aren’t actually in a recession is positive news and makes it more likely that we’ll get through this slump faster and with less overall pain than some have predicted. The last two quarters were filled with negativity and bad economic news yet the GDP still managed to eke into the black. My guess now is that, by the time the next president takes office, our economy will be on the rebound but economic conditions will still be the central issue of this campaign.