GDP Grew By 5.7% in the Fourth Quarter of 2009
Posted on January 29, 2010The U.S. GDP grew by 5.7% in the 4th quarter of 2009 according to the U.S. government. This could be the beginning of a jobless recovery. USA Today reports that economist were expect a growth rate of 4.5%.
Growth the last three months of 2009 set the fastest pace since the third quarter of 2003 and beat economists' expectations of a 4.5% rate.The Atlantic notes that this is just the first GDP estimate and the 4th quarter GDP could ultimately be revised downward.
"I'm very impressed with what I've seen," says Bernard Baumohl, chief global economist at the Economic Outlook Group. "The skeptics of the economic recovery are going to have some explaining to do."
First, a disclaimer: 4th quarter GDP may not have been 5.7%. In fact, it's very likely it wasn't. This is just the first estimate, and there are two more revisions to come before the number is final. You may recall that 3rd quarter GDP started at 3.5% in its first estimate, only to be revised downward twice, to eventually settle at a much more mild 2.2% rate.Overall the economy shrank by 2.4% during 2009. Economic growth is expected to slow from the 5.7% Q4 pace during 2010 but positive growth is anticipated. Howver, without new job creation it is also possible the economy could slip back into a recession.