With the US economy shrinking 5.1% overall, the recession in the US was 25% worse than first estimated. GDP adjusted for inflation was lower in June 2011 than it was in June 2008.
Normally after a recession, growth will have reached 4%-6% with enough impetus to continue recovery. The US is forecast to grow just 2% - 3% this year. In the UK the growth over the last three quarters is just 0.2% with the Eurozone countries as bad.
The IMF has noted that once a country's debt to GDP rises above 60% the benefit to the economy of extra borrowing is negative. As the ratio nears 100% debt to GDP extra borrowing actively starts to kill the economy as the population starts to fear for the future.
In the UK the ratio is already 80% and it is estimated that we have just 18 months before we hit the dreaded 100% debt to GDP.
