Recession Worse Than Thought; GDP Growth Weak

Economy grew just 1.3% over past three months
By Matt Cantor,  Newser User
Posted Jul 29, 2011 11:00 AM CDT
The 2007-2009 recession, already in the record books as the worst in the 66 years since the end of World War II, was even worse than previously thought.   (AP Photo/Mark Lennihan)

(Newser) – We already knew the Great Recession was the worst in decades, but in fact we were even worse off than we thought, new figures show. The economy shrank 5.1% over the course of the recession, from 2007 to 2009—1 percentage point worse than the earlier estimate of 4.1%, the AP reports. Only two in the past 10 recessions saw a squeeze of more than 3%. And yes, the economy is now growing—but it expanded only 1.3% from April to June, the Commerce Department said, lower than expected.

Officials also revised the growth figure for the first three months of the year to 0.4%, compared to an earlier estimate of 1.9%. That means that the past 6 months have seen the least growth since the end of the recession. Among the reasons: Gas prices, less consumer spending, and smaller government, notes the Atlantic. Combine these figures with the debt ceiling crisis, and it’s “like hearing about the Hindenburg on the day the 6-mile meteor hits the earth,” said a blogger. (Read more recession stories.)

My Take on This Story