High Oil Price and Earthquake Have Hindered US Economic Growth

The cost-effective development in US inside first quarter of your year shows rather ordinary performance because of the rapid popularity of oil price. Some analysts indicate which the price escalating oil has exposed north america economic expansion of 2010 to great pressure and obstacles.

Statistics indicate that this economic rate of growth of Us reached 3.1 percent during the fourth quarter of during the past year and the growth rate of the first quarter this particular year has declined to 1.8 percent. United states Department of Commerce was gonna conduct correction toward the economical data in the first quarter on May 26, local time. Some analysts predict how the percentage would be about to reach 2.2 percent after the correction. For as long as the efficient perspective from the second quarter as well as the partner year can be involved, various parties sold in the market are holding a rather cautious and positive attitude toward this problem. Some people even indicate that this economic rate of growth of the usa may not ready to exceed 3 percent in this year. David Wyss, the primary economist from the Standard; Poor in California forecasts the economic growth rate of the us will continue to be around 2.5 percent on the second quarter of that year. Alternatively, he predicts the fact that the economic growth rate with the whole year might reach 2.7 percent, and then the percentage in in '09 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 receiving the interview that: the strangely elevated oil cost is beyond doubt likely to hinder American economic growth and development.

The reality is, in addition to the high oil price, American economy will be confronting using a huge amount of other tough obstacles. One example is, lots of people have concerns that the 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 likelihood of revealing the supply chain in terms of US manufacturing industry. The reason is that US automobile and electronic product manufacturing companies are to the very big extent subject to importing core components from Japan for example some kind of special mineral processing equipment.

Even though influence of the financial disaster is gradually fading in US, the nation haven't totally recovered belonging to the severe impact yet. US needs to keep attaching more attention and focus to economic development.