The American economy is again at risk of recession. The second quarter of the current financial year also recorded negative growth. America, the world’s largest economy, is under threat of recession for the second consecutive quarter.
There was a negative growth of 0.6 percent in the second quarter from April to June and a negative growth of 1.6 percent in the quarter from January to March. Also, inflation in June was 9.1 percent. June was the highest rate recorded in 40 years. However, inflation has come down to 8.5 percent in July. This gives good hope to the government.
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As the unemployment rate in the country is low, the wage rate is high and the increase in consumer spending is on the straight line, the economy is expected to recover from the threat of recession soon.