World economy gets reality check | business | Hindustan Times
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World economy gets reality check

Gloomy data from across the world provided a stark reminder of the perilous state of the global economy for investors buoyed by the euphoria of the G20 summit in London. The US unemployment rate leapt to a 25-year high of 8.5 per cent in March as employers shed a 6.63 lakh jobs.

business Updated: Apr 04, 2009 01:21 IST

Gloomy data from across the world on Friday provided a stark reminder of the perilous state of the global economy for investors buoyed by the euphoria of the G20 summit in London.

The US unemployment rate leapt to a 25-year high of 8.5 per cent in March as employers shed a 6.63 lakh jobs. “Obviously, this is hitting the U hard,” US President Barack Obama said at a joint press conference with German Chancellor Angela Merkel on a visit to Germany.

There was also a decline in the US services sector, which contracted for the sixth consecutive month despite expectations of a rise in a sector that dominates the world’s top economy.

On Wall Street, the Dow Jones Industrial Average dropped 0.60 per cent and the Nasdaq slipped 0.08 per cent.

The data also hit oil prices, which dropped to just over $50 a barrel after rocketing 4.31 dollars on Thursday.

The Spanish central bank forecast an unemployment rate of 19.4 per cent next year and Ireland said its recession-hit economy would shrink by about 7 per cent in 2009.