G-20 summit: 6 countries in recovery

The G-20's six largest economies took a big hit during the global recession in the past year and a half. Challenges remain but most appear on the path to recovery.

1 of 6
BACKNEXT
United States: Painful rebound
United States: Painful rebound
GDP: -1%
Inflation: -1.5%
Unemployment: 9.7%
Markets: 18.3%
Interest rate: 0% to 0.25%

The U.S. economy appears to be stabilizing after declining for four straight quarters, but the recovery has been tepid so far.

Financial markets have shown signs of improvement, and interbank lending has largely returned to normal. Consumer spending is still shrinking due to ongoing job losses and difficult credit conditions, but it has been stabilizing over the past quarters. Furthermore, home sales and new home construction are beginning to make a long-awaited comeback.

Businesses have continued to cut back on spending and have sharply reduced their inventories. But many economists believe that companies are largely done with their cuts, which could lay the groundwork for economic growth this quarter. The massive $787.2 billion stimulus bill is also expected to give GDP a boost in the current quarter.

"The recession is very likely over at this point," Federal Reserve Chairman Ben Bernanke said last week. But he also added, "It's still going to feel like a very weak economy for some time."

That's because unemployment continues to rise, retail sales are still slipping, factories have cut output to the bare bones and wages remain depressed.
NEXT: Japan: Cautious improvement
Last updated September 24 2009: 11:03 AM ET
Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
Source: IMF, national statistics offices, central banks, S&P 500
More Galleries
Graffiti about crisis fills Athens' streets Artists are taking to the streets to express their views on the Greek crisis. More
My whirlwind 24 hours in Taiwan as a bridal supermodel Unlike the West, Taiwanese brides-to-be sit for hun sha ?? photo sessions before their actual wedding day. The photos are seen as a status symbol as well as a way to capture the brides' youth and glamor. More
8 startups that'll make your travel experience so much better Here are the new travel apps and services that will make trips easier, less time-consuming, and more fun for the every day business traveler. More

Special Offer