The United States has officially entered a recession.
The statement's been made by the head of the San Francisco branch of the Federal Reserve, the nation's central bank.
"The recent flow of economic data suggests that the economy was weaker than expected in the third quarter, probably showing essentially no growth at all," said Janet Yellen in an address in Palo Alto, California.
"Growth in the fourth quarter appears to be weaker yet, with an outright contraction quite likely," she said.
"Indeed, the US economy appears to be in a recession."
Meantime, Prime Minister Kevin Rudd has told the National Press Club, Australia is well placed to weather the global economic turmoil.
“Our economy will be affected by the global fallout – that is why the government has taken decisive, early action to support our economy and our financial system.
“The government has systematically taken a range of measures over the past 10 months to maintain the stability of the Australian financial system.”