Nouriel Roubini: Chances of double dip recession in US raised

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http://www.moneycontrol.com/video/fii-view/chancesdouble-dip-recessionus-raised-roubini-_483064.html?utm_source=Article_Vid

Economist Nouriel Roubini has come out with yet another chilling prediction. Roubini warns that the chances of a double dip recession in the US have increased as the second half of the year is expected to be even worse, reports CNBC-TV18.

“Compared to six months ago when the probability of double dip was very low, right now, I expect it to be very high,” Roubini warned. Growth in Q2 has been revised downwards from 2.4% to 1.6%, given the construction numbers will be revised down to 1.2%,” he added.

He reasoned that based on the data the second half of the year is going to be worse than the first half 2 because all the tailwinds will become headwinds. He is concerned that if we finish Q2 with 1.2% then the second half will be worse.

“Once the growth rate is 1%, you are already in a growth recession, and then the risk is that the financial markets are going to have a downturn,” Roubini said.

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