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Official economic data shows that a substantial number of nations were in recession as of early 2009. The US entered a recession at the end of 2007,[84] and 2008 saw many other nations follow suit. The US recession of

Official economic data shows that a substantial number of nations were in recession as of early 2009. The US entered a recession at the end of 2007,[84] and 2008 saw many other nations follow suit. The US recession of 2007 ended in June 2009[85] as the nation entered the current economic recovery. The timeline of the Great Recession details the many elements of this period.

United States

The United States housing market corr

The United States housing market correction (a consequence of the United States housing bubble) and subprime mortgage crisis significantly contributed to a recession.

The 2007–2009 recession saw private consumption fall for the first time in nearly 20 years. This indicated the depth and severity of the recession. With consumer confidence so low, economic recovery took a long

The 2007–2009 recession saw private consumption fall for the first time in nearly 20 years. This indicated the depth and severity of the recession. With consumer confidence so low, economic recovery took a long time. Consumers in the U.S. were hit hard by the Great Recession, with the value of their houses dropping and their pension savings decimated on the stock market.[86]

U.S. employers shed 63,000 jobs in February 2008,[87] the most in five years. Former Federal Reserve chairman Alan Greenspan said on 6 April 2008 that "There is more than a 50 percent chance the United States could go into recession."[88] On 1 October, the Bureau of Economic Analysis reported that an additional 156,000 jobs had been lost in September. On 29 April 2008, Moody's declared that nine US states were in a recession. In November 2008, employers eliminated 533,000 jobs, the largest single-month loss in 34 years.[89] In 2008, an estimated 2.6 million U.S. jobs were eliminated.[90]

The unemployment rate in the U.S. grew to 8.5 percent in March 2009,[91] and there were 5.1 million job losses by March 2009 since the recession began in December 2007.[92] That was about five million more people unemployed compared to just a year prior,[93] which was the largest annual jump in the number of unemployed persons since the 1940s.[94]

Although the US Economy grew in the first quarter by 1%,[95][96] by June 2008 some analysts stated that due to a protracted credit crisis and "...rampant inflation in commodities such as oil, food, and steel", the country was nonetheless in a recession.[97] The third quarter of 2008 brought on a GDP retraction of 0.5%[98] the biggest decline since 2001. The 6.4% decline in spending during Q3 on non-durable goods, like clothing and food, was the largest since 1950.[99]

A 17 November 2008 report from the Federal Reserve Bank of Philadelphia based on the survey of 51 forecasters, suggested that the recession started in April 2008 and would last 14 months.[100] They project real GDP declining at an annual rate of 2.9% in the fourth quarter and 1.1% in the first quarter of 2009. These forecasts represent significant downward revisions from the forecasts of three months ago.

A 1 December 2008 report from the National Bureau of Economic Research stated that the U.S. had been in a recession since December 2007 (when economic activity peaked), based on a number of measures including job losses, declines in personal income, and declines in real GDP.[101] By July 2009 a growing number of economists believed that the recession may have ended.[102][103] The National Bureau of Economic Research announced on 20 September 2010 that the 2008/2009 recession ended in June 2009, making it the longest recession since World War II.[104] Prior to the start of the recession, it appears that no known formal theoretical or empirical model was able to accurately predict the advance of this recession, except for minor signals in the sudden rise of forecasted probabilities, which were still well under 50%.[105]