US GDP growth figures falls short of predictions, raises tensions for economic recovery


Crews load and unload consumer products at the Port of New Orleans along the Mississippi River in New Orleans, Louisiana

 

Economic growth in US got back into some speed lately in the first quarter, but it was not as expected. This elevated tensions as an already weakening economy is showing positive signals to cope-up with deep government spending cuts and higher taxes.

US GDP growth figures falls short of predictions, raises tensions for economic recovery2-global-annal

The Gross domestic product figures expanded at a 2.5 percent annual rate, said the Commerce Department on Friday. The growth indices almost stalled at 0.4 percent in the fourth quarter of last financial year. However, the economists were expecting a 3.0 percent growth rate this quarter.

“It wasn’t the bang-up start to the year we had hoped for, and the signals from March suggested that we will only decelerate from here,” said Avery Shenfeld, Chief Economist at CIBC World Markets Economics in Toronto.

Source: Reuters, NY Times, LA Times, WSJ

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