Gross Domestic Product contracted 6.2% from October to December 2008. Falling exports as the worldÃ‚Â´s economy is in turmoil contributed to the decline as well as lower retail sales and a reduced customer spending. As the recession continues to deepen, analysts expect shocking figures for 2009 first quarter as businesses reduced investment as demand continues to drop.
The contraction of the US economy would have a deeper impact on its trading partners as demand for foreign goods and services dries up. The US government has announced various plans to boost consumer spending and business investment, only time will tell if they are successful in rebooting the economy.
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