Missed Expectations: G20 Emergency Plan ‘Won't Help US Economy to Recover'

The hope of the US government, that the G20 countries could help the US economy out of the crisis, won't be fulfilled, German newspaper Deutsche Wirtschafts Nachrichten (DWN) wrote.

The US expected G20 countries to work out a plan to keep up the slowing global economy and to prevent it from stalling. However, the US' expectations of the emergency plan's positive impact on the US economy are unlikely to be met, the newspaper reported.

The US economy is currently experiencing a slowdown, especially raising concerns about its manufacturing sector. US manufacturing PMI which is considered an important early indicator of the economic development reached 51.0 points instead of the expected 52.4, and it's at its lowest rate since October 2012.

According to Chief Economist at Markit, Chris Williamson, the US economy is currently on the brink of recession:

"American companies are reporting the worst business conditions over last three years," he said. "The production […] is growing as slowly as at the end of 2012, while exports are declining due to weakened global demand and the strong dollar," Williamson said.

According to experts, the possibility of the US sinking into a full-fledged recession now stands at 18%. The concerns had increased over the last few weeks amid the recent market turmoil which may negatively affect consumer confidence and spending, a driving force in US economic growth.