High Oil Price and Earthquake Have Hindered US Economic Growth

The commercial rise in US while in the first quarter from this year shows rather ordinary performance because of the rapid increase in oil price. Some analysts talk about that this price popularity of oil has exposed north america economic expansion of this year to great pressure and obstacles.

Statistics indicate that economic rate of growth of U . s reached 3.1 percent in the fourth quarter of not too long ago since the growth rate in the first quarter during this year has declined to 1.8 percent. The states Department of Commerce was interested in conduct correction toward the commercial data of this first quarter on May 26, local time. Some analysts predict how the percentage is prone to reach 2.2 percent following the correction. On condition that the efficient perspective on the second quarter also, the partner year is anxious, various parties on the market are holding a very cautious and positive attitude toward this concern. Some people even claim of the fact that economic rate of growth of the United States probably are not prepared to exceed 3 percent through this year. David Wyss, the chief economist in the Standard; Poor in San francisco forecasts your economic growth rate of the usa will always be around 2.5 percent inside second quarter of that year. Conversely, he predicts the fact that economic rate of growth of one's whole year might reach 2.7 percent, and also the percentage in recently was 2.9 percent. The cost-effective professor with the branch university of California State University on Channel Islands, Sung Won Sohn claimed when finding the interview that: the higher than normal oil cost is needless to say attending hinder American economic development and growth.

The reality is, aside from the high oil price, American economy continues to be confronting having plethora of other tough obstacles. By way of example, lots of people are preoccupied how 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 smashing the supply chain in comparison to its US manufacturing industry. The reason is that US automobile and electronic product manufacturing companies are to a huge extent dependent on importing core aspects of Japan along the lines of one impressive mineral processing equipment.

Even if the influence from the economic is gradually fading in US, the country has not yet totally recovered on the severe impact yet. US should keep attaching more attention and concentration to economic development.