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Posted Oct 27, 2011, 7:51 am
Economic growth in the United States accelerated modestly in the third quarter, relieving fears that the country would slide back into a recession, according to The New York Times. The growth is expected to continue at about the same until the end of the year.
After adjusting for inflation, the country’s gross domestic product — a broad measure of all goods and services produced in the economy — grew at a 2.5 percent annual rate, according to the Chicago Tribune. The number is double the 1.3 percent annual rate during the previous quarter.
However, the 2.5 percent rate during an economic recovery is still considered below average, the Chicago Tribune reports. Economists say a growth rate of 3 percent or better is usually needed to lower unemployment statistics.
Most economists agree the growth will slow again in the fourth quarter to a 2.2 percent annual growth rate and down to a 2.3 percent growth throughout the rest of 2012.
Looking ahead, some economists are concerned that the recovery will again slow as the real estate market remains moribund, unemployment high, wages stagnant and consumer confidence low more than two years after the recession formally ended.
"Even if the economy doesn't contract, growth should remain unusually lackluster next year," said Paul Ashworth, chief U.S. economist at Capital Economics.
Federal Reserve officials are scheduled to meet Tuesday and Wednesday to discuss possible measures to ensure economic growth.