'Risk of double-dip recession is rising'

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The Independent Online

Nouriel Roubini, the US economist who predicted the scale of global financial troubles, said a U-shaped recovery is possible, with leading economies undeperforming perhaps for three years.

"I believe that the basic scenario is going to be one of a U-shaped economic recovery ... I also see a small probability, but a rising probability, that if we don't get the exit strategy right we could end up with a relapse in growth," he added. Professor Roubini said he was concerned that economies which save a lot, such as China and Germany, might not boost consumption enough to compensate for any fall in demand from "overspenders" such as the US and UK.