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Journalism of Courage
The worlds largest economy US grew at a slower pace than projected,expanding just 2.8 per cent in the last three months of 2010.
The downward revision from the earlier estimate of 3.2 per cent was mainly on account of lesser consumer spending.
Real gross domestic product — the output of goods and services produced by labour and property located in the US — increased at an annual rate of 2.8 per cent in the fourth quarter of 2010, US Bureau of Economic Analysis said today.
The American economy,which fought the financial meltdown with heavy doses of stimulus,had expanded 2.6 per cent in the 2010 September quarter.
Consumer spending rose 4.1 per cent in the last three months of 2010 as against earlier projection of 4.4 per cent.
Going by official data,the fourth-quarter growth of 2.8 per cent reflected positive contributions from personal consumption expenditures (PCE),exports,and non-residential fixed investment.
But these gains were partly offset by negative contributions from private inventory investment and state and local government spending,BEA said in a statement.
The market value of the national economy stood at USD 14.86 trillion in December-end,2010.
Global economy is seeing a fragile recovery,led by emerging nations,while many advanced economies are still grappling with sluggish growth.
Meanwhile,latest figures released today showed that UK economy contracted more than expected at 0.6 per cent in the last three months of 2010.
During the same period,euro zone — a grouping of 16 nations that share the common currency euro — registered a growth of 0.3 per cent.
