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US growth outshines UK
27 Jan 2012The US put the shrinking British economy firmly in the shade during the final three months of 2011 as the global powerhouse grew at its fastest pace for a year and a half.
The world's biggest economy expanded at an annual pace of 2.8% between October and December - short of analysts' hopes of 3% but still a marked acceleration from the 1.8% seen in the third quarter.
The latest figures threw the woeful performance of the UK's own spluttering recovery into sharp relief after official estimates revealed a 0.2% decline during the same period this week.
President Obama's stimulus measures last autumn are likely to have helped growth although the American jobs market is still weak and the US Federal Reserve expects to keep interest rates close to zero until the end of 2014. Analysts flagged up warning signs such as weaker consumer spending and a big build-up of stockpiles, which could herald a slowdown in the first quarter.
ING Bank's chief international economist, Rob Carnell, said: "We might well get something closer to the 2% mark than 3%."
Reader views (6)
The USA has always had big taxpayer-debts/deficits. Military and Space program etc. No ever mentioned or talked about it because everybody lived on enourmous credit (American dream). So called.
- Sam, Londonium, 29/01/2012 02:13
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America could have been well on the road to recovery earlier, but the republicans were determined to bring Obama down personally. They thought Obama would be blamed, if they wrecked the economy. They tried absolutely everything shameful treacherous act.
Usually the moderate politicians in Washington get things done through compromise for the country, but the tea-party 'Reich-Wing' fanatics backed by corporate elitist, the despised 1%, have blackmailed the GoP into blocking and filibustering all the recovery efforts just because the President is black.
Obama has done pretty well to stay focused with this and, other problems he inherited from the previous failed administration. The Bush administration was the worse in living memory. The USA always hires democrats to fix the country after the reckless republicans. This time is here again 2012.
- Sam, Londonium, 29/01/2012 00:48
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Obama is spinning to save his run for a second term. We, most of us, are not deluded.
- JoAnne, Henderson, NV, USA, 27/01/2012 22:54
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Yeah but the USA haven't got a load of brainless twollops playing yes minister. If you take that obvious disadvantage into account, we aren't doing too bad.
- Tom, London, 27/01/2012 17:28
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And so would UK be moving on if it was not held back by the burden of EU and liberal clap trap .
- Chinaman, Yongkang, 27/01/2012 15:18
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We are coming into a Presidential General Election in the USA. The USA has a massive debt public/private and trade, when the world wakes up, the dollar will tak a kicking.
But it is not on the whole private sector but the public sector that is growing in the USA. After the Presidential there will be a hang over from the Party.
I think the Brits are right to focus down on the debts, change attitudes to welfare and improve education. The old tortoise may come out in front over time!!!
- Andrew, London, 27/01/2012 15:14
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