The main story coming out of America just before the start of the long weekend was that it’s economy seems to be grinding to a serious and dramatic halt, sparking fears of a double-dip recession. The problem is when America has problems economically, the rest of the world gets dragged down with them. Despite our economic growth figures looking quite positive, we have been warned that we don’t want to grow too fast, else we also risk running out of steam too quick.
So what happens if America does go into recession? It’s effects over here probably won’t be noticed until after a 6 month period. During that time America’s problems will have had time to create an impact in the rest of the world. So my prediction is that any effect over here won’t become apparent until mid 2011. That gives us a year to plough ahead, keep economic growth coming, and try to neutralize any effect an American recession may cause.