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Friday 30th of October 2009
October 29, 2009    

World’s largest economy sees third quarter growth

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by Kay Murchie
World’s largest economy sees third quarter growth

Official figures today have revealed that the US economy expanded at an annualised rate of 3.5% between the July and September period, suggesting that the economy has exited its worst recession in 70 years.

The figures have come as no surprise after many economists had expected that the economy would experience positive growth in the third quarter.

The growth pace in GDP exceeded expectations, with many expecting growth of 3%. The US economy last experienced growth in the second quarter of 2008, when it grew 2.4%.

Many experts believe the return to growth was boosted by President Obama’s $787 billion (£480 billion) stimulus package, as well as the Government’s Car Allowance Rebate System (CARS), branded the “cash for clunkers” scheme.

However, despite the return to growth, many are warning that recovery will be slow and unemployment will remain high.

Across the Atlantic, however, it was revealed last week that the UK had not exited recession in the third quarter as hoped.

Official figures revealed that the UK economy shrank by 0.4% in the July to September period

Major economies such as Japan, Germany, France and Hong Kong all exited recession in the second quarter after experiencing positive growth.

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