The article that I choose it’s from a newspaper called USA TODAY. In this article the journalist explained what happened with the Gross Domestic Product in the USA.
In the final quarter last year, the Commerce Department said that the economic growth increased 2.8%, but the initial estimate annual rate was 3.2%.
State and local governments cut spending at 2.4%, and it was deeper than their first objective: reduce at 0.9%
Consumers reduce his consume a little less (4.1%) than their first thought (4.4%). It was the best reduction since 2006.
With this information seems that the country would grow his economy BUT there are important things to considerate:
- The consumers can spend enough money to offset the negative forces?
- The energy prices will remain the same? (If the price of oil grows, it’s possible another recession)
The economy is growing since the last spring, but rising oil prices and budget cuts could change all.
The economic growth must be stronger to solve the problem with the unemployment (the last month was 9%). If only grows 3% in a year it couldn’t help to improve it and this also with the other things.
1 comment:
Although the GDP is growing, does it indicate that the crisis will finish? Why?
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