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The economy grew at an "encouraging" rate of 3.3 percent in the second quarter of the year, as exports drove the nation forward despite some "serious economic headwinds", secretary of commerce Carlos M Gutierrez has announced.
Speaking after the Commerce Department released its latest preliminary estimate of real gross domestic product (GDP), Secretary Gutierrez said the growth demonstrates the "resilience" of the US economy.
He added that in order to maintain the momentum, Congress must taken urgent action to vote on pending free trade agreements that could further boost exports by opening more international markets to US products.
Secretary Gutierrez also called for "sound energy" policies and tax cuts to keep the economy on the right tracks going forward.
"By making the historic tax cuts permanent, America’s families and small businesses will be able to keep more of their hard-earned money," he said.
However, according to the Washington Post, some doubt whether the growth can be maintained. For example, it says second quarter consumer spending was buoyed with over $100 billion in tax rebates from the federal government and this will not be sustained over the long-term.
Ian Shepherdson, chief US economist with consultancy High Frequency Economics said despite the figures, he expects "much weaker" growth in the second half of 2008.
In Focus: Economy posts "encouraging" second quarter growth
The economy grew at an "encouraging" rate of 3.3 percent in the second quarter of the year, as exports drove the nation forward despite some "serious economic headwinds", secretary of commerce Carlos M Gutierrez has announced. Speaking after the Commerce Department released its latest preliminary estimate of real gross domestic product (GDP), Secretary Gutierrez said the growth demonstrates the "resilience" of the US economy.
He added that in order to maintain the momentum, Congress must taken urgent action to vote on pending free trade agreements that could further boost exports by opening more international markets to US products.
Secretary Gutierrez also called for "sound energy" policies and tax cuts to keep the economy on the right tracks going forward.
"By making the historic tax cuts permanent, America’s families and small businesses will be able to keep more of their hard-earned money," he said.
However, according to the Washington Post, some doubt whether the growth can be maintained. For example, it says second quarter consumer spending was buoyed with over $100 billion in tax rebates from the federal government and this will not be sustained over the long-term.
Ian Shepherdson, chief US economist with consultancy High Frequency Economics said despite the figures, he expects "much weaker" growth in the second half of 2008.
