Thursday, February 19, 2009

A slow-growth recession

This is the kind of statement that makes normal people scratch their heads and figure nobody can understand an economist:

In 2008, the economy grew 1.3 percent despite being in recession the full year, according to government data.


I have a degree in economics, and I don't understand what they mean. Didn't a recession used to be defined by contraction instead of expansion?

On the other hand, they expect things to get better pretty soon, which is a lot different than the previous doom and gloom scenarios I have read:

The central bank said it saw the economy recovering in 2010 better than previously expected, at growth between 2.5 percent and 3.3 percent, up from a 2.3-3.2 percent forecast in October.

Growth in 2011 would accelerate to between 3.8 percent and 5.0 percent, significantly higher than 2.8-3.6 percent increase seen in the last forecast.

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