Friday, April 30, 2010

Economy Grows 3.2% in 1st Quarter

Some news about the economy today. The first quarter GDP average has gained a healthy 3.2% in 2010. That being said, it is below both the estimate and the growth from last quarter. In fact, this is a sharp decline from the 5.6% increase in the fourth quarter of 2009. This news represents the third consecutive quarter of growth after four consecutive shrinking quarters. Estimates for growth for this quarter were actually at 3.5%-- meaning that actual growth was almost 10% lower than expected.

Indeed, Friday's report from the Commerce Department confirms that the economy is expanding at a rate only a bit above its long-term trend -- economists generally think that the nation's economy can grow at 2.5 to 3 percent in the long run thanks to population growth and rising productivity.

Considering the economy contracted over 6% in the first quarter that President Obama took office, we still have a long way to go. We have significant time left before we even come even to the economic state we were in before the recession hit. Don't be surprised if we see a lot of glad-handing over this.

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