TD: Age of Uncertainty Begins

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A report published by TD Economics on December 17th, 2009, shows that there is strong evidence that the Great Recession has ended and that the world economy expand by 3.8% in 2010.

The recovery is likely to neither quick not easy, and there can be no certainty in regard to the course it will take.

The signal that the recession had ended was the moment North America had posted growth in the third quarter.

Now Canada might have posted the slimmest of margins in the third quarter, the recovery will be more evident when growth of around 4% is recorded for the fourth quarter.

There are a number of risks that could impede recovery. One of which is that the central banks will have to act with precision when they remove monetary stimulus or they may further slowdown, or possible even reverse the progress.

Another risk that is present is the steps fiscal authorities will have to take to gain credibility in order to address soaring deficits and debt.

The TD report is based on the assumption that the financial regulators will have to make the right decisions in the future.

The steps taken after recovery will be hard and long, but with perseverance it will not be long that we all look back to the recession as a distant memory.

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