US, Europe economies face free fall

The world’s largest economies are falling victim of recession as over 530,000 American jobs were lost in November, the worst monthly figure in 34 years. In Europe, Canada’s economy lost 70,600 jobs in the same month marking the biggest cut since June 1982. Germany's central bank predicts the country’s economy will fall by up four percent next year.

• According to figures, the recession, which officially began last year, is likely to be the worst since the Great Depression of the 1930s.
• “You can’t get much uglier than this. The economy has just collapsed, and has gone into a freefall,” said Richard Yamarone, of Argus Research in New York.
• A number of US banks are expected to cut thousands of jobs while US car makers are also set to dismiss a huge number of employees.
• Canada’s unemployment rate went up to 6.3 percent from 6.2 percent in October. Analysts say the figure will worsen in the next months.
• “Unfortunately, I think this is the start of a wave of job losses in Canada,” said Sal Guatieri, senior economist at BMO Capital Markets.
• Deutsche Bank chief economist Norbert Walter German gross domestic product could shrink by up to four percent next year.
• German Finance Minister Peer Steinbrueck said there was a need for an immediate cut of the value-added tax (VAT) rate for a year to support his country’s domestic economy.
• He described the downturn as a “crash” which “can no longer be stopped” if the cut is not made.