Ever Heard of a ‘Growth Recession’? That’s What May Be Coming, Not a 2008 Crash

Ever Heard of a ‘Growth Recession’? That’s What May Be Coming, Not a 2008 Crash

Concerns about a US economic downturn are increasing. Eleven years ago, the Great Recession left painful memories of low GDP growth, millions of lost jobs and business failures. But economists say not all recessions are the same, and many claim the world is already in a recession. An economy, they say, can continue to grow even during a recession. Such “growth recessions” occur when the economy expands below trend and slows down. “By our metrics, we’re in a global growth recession,” said Alessio de Longis, senior portfolio manager at Invesco, the Denver-based financial services company. “As we enter 2020, growth is slowing and it’s slowing in a synchronized way.”

 

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