News / USA

US Economy Grew Faster in Late 2011

A December 26, 2011 file photo shows a woman walking down 34th Street with the fruits of her shopping expedition on the day after Christmas in New York
A December 26, 2011 file photo shows a woman walking down 34th Street with the fruits of her shopping expedition on the day after Christmas in New York

The U.S. economy, the world's largest, grew at its fastest pace in a year-and-a-half in late 2011, but questions remain whether the advance will continue in coming months.

The U.S. government said Friday the country's national economic output increased 2.8 percent in the October-to-December period, a bit below the 3 percent estimate economists had projected. But the fourth quarter advance was the best of the year and the quickest pace since the April-to-June period in 2010.

For the year, the U.S. economy grew just 1.7 percent, after expanding 3 percent in 2010.

The government said the fourth quarter advance was boosted by companies rebuilding their inventories, and heightened consumer spending, which accounts for 70 percent of the national economy. But some of the spending came as Americans cut their savings rate.

While analysts said the American economy ended 2011 on a reasonably positive note, the advance could slow in the first months of 2012. With inventories rebuilt, businesses could ease their spending, and the U.S. is faced with a stalled economy throughout Europe, which could limit exports to one of its major trading partners.

The U.S. central bank, the Federal Reserve, this week forecast the country's 2012 economic growth at 2.2 to 2.7 percent, a slightly lower projection than it made just two months ago.

The U.S. economy has struggled to recover from the recession that extended from 2007 to 2009, advancing by some measurements, retreating in other ways.

The country's jobless rate, while still high by historical standards, declined to 8.5 percent in December, a figure that the nation's central bank says could edge lower in the coming months. About 200,000 jobs were added to the economy last month, but 13 million workers remain unemployed, with millions more having given up looking for work or employed in part-time jobs even as they seek full-time work.

The U.S. housing market is perhaps the weakest link in the national economy, with the fewest ever number of new homes sold in 2011, based on records dating back nearly a half century.

Central bank officials have often expressed disappointment that several policy shifts have failed to consistently boost the U.S. economy. The Federal Reserve this week said it would keep its benchmark interest near zero through late 2014, a year-and-a-half longer than previously announced, in a renewed effort to assure financial institutions that their borrowing costs will remain low for the next three years.

But the continued low rate also was an acknowledgement that the U.S. economy is still not advancing as fast as government leaders has hoped.

The national economy has become the key issue in the country's 2012 presidential race, as U.S. President Barack Obama, a Democrat, seeks a second four-year term. His two main Republican opponents - one-time venture capitalist Mitt Romney and former House of Representatives Speaker Newt Gingrich - have both staunchly criticized Mr. Obama's handling of the national economy as they vie for their party's nomination to oppose him in the national election in November.

Some information for this report was provided by AP and Reuters.

You May Like

Multimedia Obama, Modi Resolve Nuclear Deal Issues

Leaders find resolution on issues of liability of suppliers to India in event of nuclear accident, US demands to track whereabouts of material supplied to country More

WHO's Late Efforts in Tackling Ebola Highlight Need for Reform

Health experts debate measures to reform agency’s response to global public health emergencies in special one-day session on deadly outbreak More

One Tumultuous Year in Power for CAR's President

As sectarian violence raged across Central African Republic, interim President Catherine Samba-Panza has Herculean task: to end civil war and put country back on right track More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Worldwide Photo Workshops Empower Youthi
X
Julie Taboh
January 23, 2015 11:08 PM
Last September, 20 young adults from South Sudan took part in a National Geographic Photo Camp. They are among hundreds of students from around the world who have learned how to use a camera to tell the stories of the people in their communities through the powerful medium of photography. Three camp participants talked about their experiences recently on a visit to Washington. VOA’s Julie Taboh reports.
Video

Video Worldwide Photo Workshops Empower Youth

Last September, 20 young adults from South Sudan took part in a National Geographic Photo Camp. They are among hundreds of students from around the world who have learned how to use a camera to tell the stories of the people in their communities through the powerful medium of photography. Three camp participants talked about their experiences recently on a visit to Washington. VOA’s Julie Taboh reports.
Video

Video US, Japan Offer Lessons as Eurozone Launches Huge Stimulus

The Euro currency has fallen sharply after the European Central Bank announced a bigger-than-expected $67 billion-a-month quantitative easing program Thursday - commonly seen as a form of printing new money. Henry Ridgwell reports for VOA from London on whether the move might rescue the eurozone economy -- and what lessons have been learned from similar programs around the world.
Video

Video Nigerian Elections Pose Concern of Potential Conflict in 'Middle Belt'

Nigeria’s north-central state of Kaduna has long been the site of fighting between Muslims and Christians as well as between people of different ethnic groups. As the February elections approach, community and religious leaders are making plans they hope will keep the streets calm after results are announced. Chris Stein reports from the state capital, Kaduna.
Video

Video As Viewership Drops, Obama Puts His Message on YouTube

Ratings reports show President Obama’s State of the Union address this week drew the lowest number of viewers for this annual speech in 15 years. White House officials anticipated this, and the president has decided to take a non-traditional approach to getting his message out. VOA White House correspondent Luis Ramirez reports.
Video

Video S. Korean Businesses Want to End Trade Restrictions With North

Business leaders in South Korea are calling for President Park Geun-hye to ease trade restrictions with North Korea that were put in place in 2010 after the sinking of a South Korean warship.Pro-business groups argue that expanding trade and investment is not only good for business, it is also good for long-term regional peace and security. VOA’s Brian Padden reports.
Video

Video US Marching Bands Grow Into a Show of Their Own

The 2014 Super Bowl halftime show was the most-watched in history - attracting an estimated 115 million viewers. That event featured pop star Bruno Mars. But the halftime show tradition started with marching bands, which still dominate the entertainment at U.S. high school and college American football games. But as Enming Liu reports in this story narrated by Adrianna Zhang, marching bands have grown into a show of their own.
Video

Video Secular, Religious Kurds Face Off in Southeast Turkey

Turkey’s predominantly Kurdish southeast has been rocked by violence between religious and secular Kurds. Dorian Jones reports on the reasons behind the stand-off from the region's main city of Diyarbakir, which suffered the bloodiest fighting.
Video

Video Kenya: Misuse of Antibiotics Leading to Resistance by Immune System

In Kenya, the rise of drug resistant bacteria could reverse the gains made by medical science over diseases that were once treatable. Kenyans could be at risk of fatalities as a result if the power in antibiotics is not preserved. Lenny Ruvaga has more on the story from Nairobi.
Video

Video Solar-Powered Plane Getting Ready to Circumnavigate Globe

Pilots of the solar plane that already set records flying without a drop of fuel are close to making their first attempt to fly the craft around the globe. They plan to do it in 25 flying days over a five month period. VOA’s George Putic reports.
Video

Video How Experts Decide Ethiopia Has the Best Coffee

Ethiopia’s coffee has been ranked as the best in the world by an international group of coffee connoisseurs. Not surprisingly, coffee is a top export for the country. But at home it is a source of pride. Marthe van der Wolf in Addis Ababa decided to find out what makes the bean and brew so special and how experts make their determinations.
Video

Video Yazidi Refugees at Center of Political Fight Between Turkey, Kurds

The treatment of thousands of Yazidis refugees who fled to Turkey to escape attacks by Islamic State militants has become the center of a dispute between the Turkish government and the country's pro-Kurdish movement. VOA's Dorian Jones reports.
Video

Video World’s Richest 1% Forecast to Own More Than Half of Global Wealth

The combined wealth of the world's richest 1 percent will overtake that of the remaining 99 percent at some point in 2016, according to the anti-poverty charity Oxfam. Campaigners are demanding that policymakers take action to address the widening gap between the ‘haves’ and the ‘have nots’, as Henry Ridgwell reports for VOA from London.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid