The economy is experiencing one of its worst recessions since The Great Depression. The real gross domestic product decreased at an annual rate of 5.5 percent in the first quarter of 2009 after contracting by 6.3 percent in the fourth quarter of 2008. The unemployment rate has risen from 7.2 percent to 10.2 percent over the past six months, and mortgage and auto loan delinquencies are hitting record levels.

Consumers have responded by tightening their belts, examining every purchase and every expense, determined to get the most value for their money.

Despite the negative economic implications, there is some good news. U.S. industrial production declines may be close to bottoming out, while business and consumer confidence recently has improved. The economy appears to be stabilizing in the second half of 2009, and a gradual recovery will begin in 2010.

Recommended For You

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.