US economic growth proves weakening slump, according to Obama

US economic growth proves weakening slump, according to Obama

10-30-2009 09:53

The economic growth in the third quarter is a sign that the slump is weakening, according to US President Barack Obama. However, a lot of work remains to be done before the US economy operates at full throttle, as recovered job generation will be a crucial indicator, Obama stated.

Weakening slump

“The GDP figures are clearly an impulse and prove that the economic recession is weakening, as they also affirm the success of the measures that we have taken,” the US President commented after the government data demonstrated that the third quarter resulted in the first economic growth in a year.
The third quarter showed that the US Gross Domestic Product grew at a 3.5% yearly pace, while it contracted by 0.7% in the second quarter. This implicates the end of the recession that lasted one year and caused the deepest US slump since the Great Depression.

US economic growth

The return of growth in the third quarter demonstrates that the economy recovers after an extensive slump. Nevertheless, generating jobs will take more time, according to a top White House economist. Christina Romer, Chair of the Council of Economic Advisers, stated: “The turnaround in key labor market benchmarks, such as unemployment and employment levels, is characteristic after the Gross Domestic Product rebound. A sustained and strong GDP growth will be necessary to decrease the unemployment level considerably.”

She continued by saying that the GDP growth seems broad based. “We see positive signs, such as rising investment spending and consumer spending, which point to a turnaround,” Romer said.