Bottom line, with less capital investment and more structural unemployment, the Bank estimates that the U.S. economy will remain over $ trillion smaller in 2015 than we had projected prior to the crisis (Chart 1). Even in this room, that is a big number.
An existential crisis in Europe Europe is stagnating with GDP still 2 per cent below its pre-crisis peak and private domestic demand a stunning 6 per cent below. A tough combination of fiscal austerity and structural adjustment will mean falling wages, high unemployment and tight credit conditions.