Global > Knowledge Base > US > US: Overview
US: Overview
Last modified on 15 June 2011 at 08:50
Growth in the US picked up rapidly in the second half of 2009 after the recession, although concerns over the long-term prospects and continued high unemployment have limited GDP growth since. We expect growth to slow to 2% in 2011, although the continued pickup in world trade will drive an acceleration to 2¾% in 2012.
The US experienced a shallower recession than Japan or the eurozone, while its recovery was stronger than the latter. The recovery has been relatively even-paced, unlike that seen in Japan, primarily due to the fact that it has been driven largely by domestic demand; indeed while exports have picked up strongly this impact has been largely outweighed by a stronger pick-up in imports.
While the economic stimulus programme provided a boost to domestic demand in the short term, it was less than was hoped, and with growth continuing after the withdrawl of these funds the effectiveness of the programme has been called into question, while the strengthening of the Republican position in mid-term elections in 2010 has removed any prospect of further stimulus. Despite modest improvements in consumer confidence, there have been few signs of significant increases in employment, and worries persist of a jobless recovery.
| Download data... |
 |
|
We expect GDP growth of about 2% in 2011, accelerating to 2¾% in 2011 as world trade continues to increase and domestic demand is buoyed by a slow but steady improvement in the labour market.