Economy's Free-fall Probably Eased In 1st Quarter

JEANNINE AVERSA

WASHINGTON (AP) — The recession's grip on the country may be letting up a bit.

The government is set to release a report Wednesday expected to show the economy shrank at a pace of 5 percent in the first three months of this year. If Wall Street analysts' forecasts' are correct, the figure — while still extremely weak — would be viewed as a hopeful sign that the worst of the recession — in terms of lost economic activity — may be past.

"The recession is easing up," said John Silvia, chief economist at Wachovia. "We're probably bottoming out here in the first half of this year." ...