Nouriel Roubini, the economist known for his negative predictions, now believes the recession will end in late 2009, Reuters reported.
Just two months ago, Roubini, who has been nicknamed “Dr. Doom,” by the press, estimated that the global recession would not end until 2010.
“We are not yet at the bottom of the U.S. and the global recession,” he said. “The contraction is still occurring and the recession is going to be over more towards the end of the year rather than in the middle of the year.”
Now he sees the recession ending sooner, although he says the United States will not be bouncing back to its earlier heyday anytime soon.
Roubini believes the United States will have a tough time rebounding and says growth “is going to be below potential for at least two years,” due to the problems caused by the financial and housing sector and the growing public debt.
However, Roubini believes Asia, which has stronger fundamentals, will recover faster compared to the United States, Europe, or Japan.
“The latest economic indicators from Korea … suggest there is the beginning of an economic recovery, and growth might be already positive in the second quarter,” he said.
More than 90 percent of economists also estimate the recession will end in 2009, according to a survey by the National Association for Business Economics, the Associated Press reported.
"While the overall tone remains soft, there are emerging signs that the economy is stabilizing," said NABE president Chris Varvares, head of Macroeconomic Advisers.
"The economic recovery is likely to be considerably more moderate than those typically experienced following steep declines."
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