Is the US suffering economic hysteresis?

The deep recession in the US and subsequent sluggish growth has led some experts to suggest the market is suffering economic hysteresis - or permanent damage to potential growth and employment, explains Robert Jukes from CGWM.

Downgrades Supra-national agencies have been busy revising down growth forecasts recently, as have the analysts. The latest red pen to paper is the IMF, which has hinted that it is forecasting lower growth. Although these figures are yet to be released at the time of writing, IMF chief Christine Lagarde has been widely trailing the downgrades with her warnings around “depressed” levels of investment. The IMF’s projections in April were for 3.6% global growth this year, and they will probably come down closer to 3.3% in the latest release. In part that is due to the US, which ...