High Oil Price and Earthquake Have Hindered US Economic Growth

Auto improve US while in the first quarter on this year shows rather ordinary performance because of the the rapid rise in oil price. Some analysts talk about that the price boost in oil has exposed united states economic increase of at the moment to great pressure and obstacles.

Statistics indicate the fact that economic growth rate of U . s . reached 3.1 percent within the fourth quarter of 2009 as you move growth rate of one's first quarter in this year has declined to 1.8 percent. The US Department of Commerce was likely to conduct correction toward the economic data with the first quarter on May 26, local time. Some analysts predict that percentage is planning to reach 2.2 percent following a correction. So long as economic downturn and the perspective on the second quarter and then the better half year goes, various parties out there are holding a rather cautious and positive attitude toward this problem. Numerous people even declare the fact that economic rate of growth of the usa may not be capable to exceed 3 percent within this year. David Wyss, the chief economist on the Standard; Poor in New york city forecasts that your economic growth rate of the usa will stay around 2.5 percent through the second quarter of your year. At the same time, he predicts that your economic growth rate of the whole year might reach 2.7 percent, additionally, the percentage in in '09 was 2.9 percent. Auto professor from the branch university of California State University on Channel Islands, Sung Won Sohn claimed when getting the interview that: the very high oil pricing is for sure likely to hinder American economic development and growth.

For that matter, independent of the high oil price, American economy will be confronting having large number of other tough obstacles. As an example, some are preoccupied which the sovereign debt crisis in Europe might future drag US economy into another dark abyss. Moreover, the earthquake and tsunami happened in Japan might increase US's chance of smashing the supply chain in relation to its US manufacturing industry. This is because US automobile and electronic product manufacturing information mill to a new very large extent determined by importing core aspects of Japan for instance some special mineral processing equipment.

But the influence within the economic is gradually fading in US, the country hasn't already totally recovered in the severe impact yet. US needs to keep attaching more attention as you concentrate to economic development.