Obama warns recession not over

President Barack Obama warned today it would take "many more months" for the United States to get out of recession even after…

President Barack Obama warned today it would take "many more months" for the United States to get out of recession even after GDP figures showed the economy shrank only modestly in the second quarter.

Mr Obama, who has defended his administration's economic policies in recent weeks in the face of worsening unemployment numbers, said jobless figures next week would still show that too many Americans were losing work.

"It will take many more months to fully dig ourselves out of a recession - a recession that we've now learned was even deeper than anyone thought," the president said in his weekly radio and Internet address.

"And when we receive our monthly job report next week, it is likely to show that we are continuing to lose far too many jobs in this country. As far as I'm concerned, we will not have a recovery as long as we keep losing jobs," he said.

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Economists said gross domestic product data yesterday provided clear evidence the 19-month recession was almost over.

Mr Obama, echoing his comments from the previous day, said that was proof his $787 billion stimulus package and other economic initiatives had shown dividends. "In the last few months, the economy has done measurably better than expected," he said, referring to the GDP report.

"And many economists suggest that part of this progress is directly attributable to the Recovery Act. This and the other difficult but important steps that we have taken over the last six months have helped put the brakes on this recession."

The president repeated his message that economic growth must come before job growth would follow and said the figures showed the country was moving in a better direction.

Reuters