High Oil Price and Earthquake Have Hindered US Economic Growth

The efficient boost US inside first quarter for this year shows rather ordinary performance because of the rapid improvement in oil price. Some analysts show your price rise in oil has exposed north america economic growth and development of this coming year to great pressure and obstacles.

Statistics indicate your economic rate of growth of U . s . reached 3.1 percent in the fourth quarter of this past year while the rate of growth of one's first quarter in such a year has declined to 1.8 percent. North america Department of Commerce was intending to conduct correction toward the economical data belonging to the first quarter on May 26, local time. Some analysts predict the fact that the percentage might possibly be prone to reach 2.2 percent following your correction. In the event that economic downturn and the perspective on the second quarter and then the other half year is anxious, various parties on the market are holding an extremely cautious and positive attitude toward this condition. Many people even express the economic rate of growth of america most likely is not competent to exceed 3 percent on this year. David Wyss, the main economist of this Standard; Poor in Los angeles forecasts that economic rate of growth of america will remain around 2.5 percent with the second quarter with this year. On the other hand, he predicts the economic growth rate on the whole year might reach 2.7 percent, and then the percentage in last year was 2.9 percent. Economic downturn and the professor on the branch university of California State University on Channel Islands, Sung Won Sohn claimed when finding the interview that: the higher than normal oil costs are no doubt travelling to hinder American economic development and growth.

In actual fact, on top of the high oil price, American economy continues confronting accompanied by a choice is about other tough obstacles. As an illustration, some folk are preoccupied that this 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 revealing the supply chain in regards to US manufacturing industry. The reason is that US automobile and electronic product manufacturing companies are to the substantial extent dependent on importing core components from Japan like one impressive mineral processing equipment.

Even though the influence with the overall economy is gradually fading in US, the media haven't totally recovered through the severe impact yet. US need to keep attaching more attention and focus to economic development.