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

Lesotho Faces New Round of Violence, Political Crisis

Brutal killing of military officer has sent former leaders back into S. Africa where they're watching anxiously as regional officials head in to try to restore peace More

Video US Diplomat Expects Adoption of Srebrenica Anniversary Resolution

Samantha Power says there's broad consensus about killings in Bosnia's war, but Russia calls resolution 'divisive,' backs countermeasure at UN More

UN Report Exposes Widespread Boko Haram Atrocities

Damning report graphically details pattern of vicious, widespread atrocities committed by Islamist militants 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.
Family of American Marine Calls for Release From Iranian Prisoni
X
Heather Murdock
July 01, 2015 8:59 PM
As the crowd of journalists covering the Iran talks swells, so too do the opportunities for media coverage.  Hoping to catch the attention of high-level diplomats, the family of American-Iranian marine Amir Hekmati is in Vienna, pleading for his release from an Iranian prison after nearly 4 years.  VOA’s Heather Murdock reports from Vienna.
Video

Video Family of American Marine Calls for Release From Iranian Prison

As the crowd of journalists covering the Iran talks swells, so too do the opportunities for media coverage.  Hoping to catch the attention of high-level diplomats, the family of American-Iranian marine Amir Hekmati is in Vienna, pleading for his release from an Iranian prison after nearly 4 years.  VOA’s Heather Murdock reports from Vienna.
Video

Video UK Holds Terror Drill as MPs Mull Tunisia Response

After pledging a tough response to last Friday’s terror attack in Tunisia, which came just days before the 10th anniversary of the bomb attacks on London’s transport network, British security services are shifting their focus to overseas counter-terror operations. VOA's Henry Ridgwell has more.
Video

Video Obama on Cuba: This is What Change Looks Like

President Barack Obama says the United States will soon reopen its embassy in Cuba for the first time since 1961, ending a half-century of isolation. VOA White House correspondent Luis Ramirez reports.
Video

Video Hate Groups Spread Influence Via Internet

Hate groups of various kinds are using the Internet for propaganda and recruitment, and a Jewish human rights organization that monitors these groups, the Simon Wiesenthal Center, says their influence is growing. The messages are different, but the calls to hatred or violence are similar. VOA's Mike O’Sullivan reports.
Video

Video US Silica Sand Mining Surge Worries Illinois Residents, Businesses

Increased domestic U.S. oil and gas production, thanks to advances known as “fracking,” has created a boom for other industries supporting that extraction. Demand for silica sand, used in fracking, could triple over the next five years. In the Midwest state of Illinois, people living near the mines are worried about how increased silica sand mining will affect their businesses and their health. VOA’s Kane Farabaugh has more in this first of a series of reports.
Video

Video Blind Somali Journalist Defies Odds in Mogadishu

Despite improving security in the last few years, Somalia remains one of the most dangerous countries to be a journalist – even more so for someone who cannot see. Abdulaziz Billow has the story of journalist Abdifatah Hassan Kalgacal, who has been reporting from the Somali capital for the last decade despite being blind.
Video

Video Texas Defies Same-Sex Marriage Ruling

Texas state officials have criticized the US Supreme Court decision giving same-sex couples the right to marry nationwide. The attorney general of Texas says last week's decision did not overrule constitutional "rights of religious liberty," and therefore officials performing wedding services can refuse to perform them for same-sex couples if it is against their religious beliefs. Zlatica Hoke reports on the controversy.
Video

Video Rabbi Hits Road to Heal Jewish-Muslim Relations in France

France is on high alert after last week's terrorist attack near the city Lyon, just six months after deadly Paris shootings. The attack have added new tensions to relations between French Jews and Muslims. France’s Jewish and Muslim communities also share a common heritage, though, and as far as one French rabbi is concerned, they are destined to be friends. From the Paris suburb of La Courneuve, Lisa Bryant reports about Rabbi Michel Serfaty and his friendship bus.
Video

Video Saudi Leaks Expose ‘Checkbook Diplomacy’ In Battle With Iran

Saudi Arabia’s willingness to wield its oil money on the global diplomatic stage appears to have been laid bare, after the website WikiLeaks published tens of thousands of leaked cables from Riyadh’s Ministry of Foreign Affairs. VOA's Henry Ridgwell reports.
Video

Video Nubians in Kenya Face Land Challenges

East Africa's ethnic Nubians have a rich cultural history that dates back thousands of years, but in Kenya they are facing hardships, including the loss of lands they have lived on for generations. They say the government has reneged on its pledge to award them title deeds for the plots. VOA's Lenny Ruvaga reports.
Video

Video Military Experts Question New Russian Tank Capabilities

Russia has been showing off its new tank design – the Armata T-14. Designers claim it is 20 years ahead of current Western designs - and driving it feels like playing a computer game. But military analysts question those assertions, and warn the cost could be too heavy a burden for Russia’s struggling economy. Henry Ridgwell reports.
Video

Video In Kenya, Police Said to Shoot First, Ask Questions Later

An organization that documents torture and extrajudicial killings says Kenyan police were responsible for 1,252 shooting deaths in five cities, including Nairobi, between 2009 and 2014, representing 67 percent of all gun deaths in the areas reviewed. Gabe Joselow has more from Nairobi.

VOA Blogs