Gross Domestic Product

When China releases its third-quarter gross domestic product figures Thursday, it's likely to post growth that's the envy of a recession-weary globe. Some analysts project the world's third-largest economy will easily surpass the government's 8% expansion target. China's exports are rebounding. Tens of thousands of laid-off workers are being rehired. Stocks and real estate have been on a tear. Though economists credit Beijing's policies for carrying the country through the worst of the global crisis, some question the sustainability of the recovery.

It's official: This recession is the worst the United States has experienced in more than 25 years, the government said Friday. And it appears likely to get worse before it gets better. At the White House, where the new administration is working on a broad strategy to combat the crisis, President Obama described the downturn as "a continuing disaster for America's working families."

Europe's economy contracted at the fastest pace in at least 13 years in the first quarter as companies cut output and jobs to survive the worst global slump in more than six decades. Gross domestic product in the 16-member euro region fell 2.5% from the fourth quarter, the biggest decline since the data were first compiled in 1995.

The worst recession since the Great Depression could be coming to an end shortly, with a fresh report raising hopes that a recovery may be stronger than previously projected. The government said Friday that the American economy shrank in the second quarter at an annual pace of 1%. That was better than the 1.5% contraction in gross domestic product that was expected by economists, and it marked a dramatic improvement from a decline of about 6% in the prior six months.

Economic growth in Mexico accelerated faster than expected at the end of last year as a jump in the service sector helped the country shrug off a slowdown in the United States, its main trading partner. The Mexican economy grew at a 3.8% rate in the fourth quarter, the government said Tuesday. Economists see Mexico weathering a possible recession this year in the U.S., as expanding credit allows consumers to spend more.

American consumers lost confidence in September as they saw the credit crisis deepen, a sign they will curtail spending, according to a survey released Friday. Meanwhile, a government report showed consumer spending was lower than initially estimated in the second quarter, slowing economic growth. The Reuters/University of Michigan final index of household sentiment declined to 70.3, lower than forecast, after a reading of 73.1 in early September.

The economy took a tumble in the summer that was worse than first thought as American consumers throttled back their spending by the most in 28 years, further proof that the country is almost certainly in the throes of a painful recession. The updated reading on the economy's performance, released Tuesday by the Commerce Department, showed gross domestic product shrank at a 0.5% annual rate in the July-September quarter. That was weaker than the 0.

The U.S. economy grew at a tepid 2.2% pace at the end of 2006, much weaker than first thought, while new-home sales last month had their biggest drop in 13 years, according to data released Wednesday that showed a soft economy. Adding to that dreary picture, the National Assn. of Purchasing Management-Chicago said its barometer of Midwest business activity slid to 47.9 in February from 48.8 in January. A reading below 50 indicates contraction.

U.S. economic growth at the close of 2006 was revised up, according to a government report Thursday, but a primary factor for the revision -- rising inventories of unsold goods -- cast a shadow over future prospects. The Commerce Department said fourth-quarter gross domestic product, measuring total goods and services output within U.S. borders, grew at a 2.5% annual rate instead of the 2.2% reported a month ago, up from 2% in the third quarter.

Mexico's economy perked up a bit in the second quarter after a slow start to the year. But some analysts warned that the acceleration could be short-lived if the U.S. economy stalls. Mexico's gross domestic product expanded at a 2.8% annual clip compared with the April-to-June period in 2006, the government reported Thursday. That was an improvement over the 2.6% rate in the first quarter, snapping a string of four quarters of decelerating growth.