US GDP shows 2% higher in 3rd quarter of 2010

By on Oct 30, 2010 in Business, Economy, United States, World Comments

The US Gross Domestic Product (GDP) shows 2% higher in the 3rd quarter this year, 2010, as reported in Los Angeles Times on Saturday.

According to the US Commerce Department, the 2% increase in is slightly higher than the second quarter of this year, which is 1.7%.

The growth is reportedly due to the strong private spending and some business investment, but having it as a low increase may be blamed for the imports, the news said.

This low increase in GDP was said not sufficient enough to reduce the high unemployment rate in the US.

Likewise, its slow growth is still lower than than the 3.25% increase on last year’s second half, economists said.

To make a significant move in the almost double-digit unemployment rate, a lot of US economists believe that the GDP should reach at least 2.5%.

“The most striking thing about today’s report on gross domestic product is that it shows that the US economy is still smaller today than it was when the recession began, Economic Policy Institute economist Josh Bivens was quoted as saying.

Mr. Bivens also said that ‘it remains a historically slow recovery, never since the World War II’.

With the upcoming congressional election in the US early next month, voters and economists hope elected officials as well as the Obama administration can provide a concrete solution for the unemployed sector.

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