High Oil Price and Earthquake Have Hindered US Economic Growth

The economical increase in US on the first quarter of that year shows rather ordinary performance because of the rapid surge in oil price. Some analysts highlight that the price rise in oil has exposed united states economic growth of this coming year to great pressure and obstacles. Statistics indicate the fact that the economic growth rate of States reached 3.1 percent within the fourth quarter of recently since the growth rate of this first quarter through this year has declined to 1.8 percent. The united states Department of Commerce was aiming to conduct correction toward economic downturn and the data within the first quarter on May 26, local time. Some analysts predict the fact that the percentage could be more likely to reach 2.2 percent after a correction. Assuming that auto perspective in the second quarter and also the better half year can be involved, various parties you can find are holding a somewhat cautious and positive attitude toward this. Some even mention that economic growth rate of america may not be able to exceed 3 percent in this particular year. David Wyss, the chief economist within the Standard; Poor in California forecasts the economic growth rate of the United States will around 2.5 percent within the second quarter of your year. Having said that, he predicts the fact that the economic rate of growth for the whole year might reach 2.7 percent, and then the percentage in last season was 2.9 percent. The commercial professor of one's branch university of California State University on Channel Islands, Sung Won Sohn claimed when receiving the interview that: the extremely high oil costs are undoubtably travelling to hinder American economic development and growth. The truth is, as well as the high oil price, American economy holds confronting by using a choice is about other tough obstacles. For example, a number of people are involved 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 potential for breaking the supply chain in terms of US manufacturing industry. This is because US automobile and electronic product manufacturing companies are to some huge extent subject to importing core components from Japan such as some special mineral processing equipment. Though the influence belonging to the economic is gradually fading in US, the country have not totally recovered from your severe impact yet. US needs to keep attaching more attention and concentration to economic development.