GDP Up 5.7 Percent

NEW YORK (CNNMoney.com)

The U.S. economy grew at the fastest pace in more than six years during the fourth quarter of 2009, according to a government report Friday.

OK, when will the job recovery start? We may have 10 percent unemployment for some time.

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11 Responses to “GDP Up 5.7 Percent”


  1. 1 Michelle Benton January 29, 2010 at 12:57 PM

    It’s a good indication but before the GDP with become stable in its growth, it has to have consumer’s spending money. In order for consumers to spend, they have to have jobs. The article said that “spending by consumers accounts for more than two-thirds of economic activity” so you would think that people having money to spend will help the GDP temendously.

    I liked how the article also reaffirned the textbook from last semester. Since the value of our dollar has decreased the amount of exports have increased because they are “cheaper.” Kinda cool to see how things are supposed to work.

  2. 2 Logan C. Songer January 31, 2010 at 12:42 PM

    Good news that the GDP is higher than expected for the 4th Quarter of 2009. Does that have anything to do with the Holiday spending spree? Christmas presents/News Years Traveling/Spending, as well as the Clunker Tax. It will be interesting to see what the 1st quarter of 2010 will do. It will also be interesting to see what happens once the government stops providing the majority of the mortgages, and stops buying mortgage-backed securities. What will happen then to the GDP? Consumer Confidence?

  3. 3 Rachel Maher February 4, 2010 at 8:22 AM

    I beleive that unemployment should be top priority now since as Michelle said above “In order for consumers to spend, they have to have jobs. The article said that “spending by consumers accounts for more than two-thirds of economic activity”.” Yet the Obama adminsitration can’t just magically make employers start hiring. Businesses need reson to hire and yes grants help, but what is needed is a 180 turn in the economy. Granted things are definitly getting better, as this article shows

  4. 4 Christopher Henderson (100) February 7, 2010 at 9:02 PM

    I agree with Logan that it will be very interesting to see how the first quarter of 2010 compares to the depressing 1st quarter of 09. I’m curious though about the comment made by Achuthan the “growth doesn’t have to stay above 4% or 5% for the economy to start making significant gains.” If that was the case, then shouldn’t we have seen significant gains already? Not just in the last two quarters? And what would be considered significant to begin with? It’s nice to see that the country is slowly recovering.

  5. 5 Azusa Mori February 21, 2010 at 6:29 PM

    It`s good to see the much increase in GDP in the 4th quarter of 2009. There seems to be a sign of economic recovery though GDP report doesn`t mark an official end of recession. But the increase in GDP doen`t necesarily mean that more people are having better income and life. There are still lots of people without jobs and affected by recession.But it`s nice to see that economy is at least improving.

  6. 6 Anna Hernandez March 7, 2010 at 3:24 PM

    “In late 2008 into 2009 everyone freaked out to prepare for Armageddon,” he said. “They fired everybody and stopped buying inventories. That overreaction is what’s being undone. Yes, you have to have jobs growth, but we’ll get that next, probably in January or February.”

    This was exactly my thought when I was reading this article. The news industry had a field day with reports about the recession. This hype, in my opinion, lead to unnecessary layoffs and a larger decline in GDP than what should have occurred. Glad to hear things are rising but is this just a phase until the news comes out with another report about the recession? Media are adding more wood to the fire.

  7. 7 mike April 7, 2010 at 9:04 AM

    It’s interesting to read an article written a few months ago. The news keeps reporting of losses and gains and a turnabout in the recession. I agree with Anna that the layoffs were possibly unnecessary due to speculation that the worst was going to happen. People cannot start spending until they have jobs. It’s like they cut in one area without realizing the effect down the road. The news also feeds new statistics ever other day with rising and declining points in the stock market. I still don’t see a huge difference in the amount of hiring and a lot of people are still out of work. There has been little gain in the GDP for the first quarter of 2010.

  8. 8 Jessica Opperman May 3, 2010 at 8:04 PM

    Its good to hear that GDP is at an increase. Always better to go up and move forward to bring the economy back then going backwards into a worse recession. Hopefully this increase in GDP is a sign of improvement in our economy and hopefully will help with the job market as well.

  9. 9 Erik Rasmussen May 18, 2010 at 12:10 AM

    Definitely good to hear that the GDP is up 5.7% but also bad to hear that it is mostly due to stimulus money and home buyer tax credits, and I think part of it might have come from the cash for clunkers. But if people don’t have the jobs to keep going in the right direction, it seems there might be a chance the GDP could slowly go back down if more jobs aren’t created. But on the other hand if the businesses used their stimulus money to move in the right direction, hopefully people can hold their jobs and keep the GDP on an up-rise, be it slow or not as long as its going in the right direction. Business equipment and software investment jumped 13% and almost added a full point to the GDP. Knowing that exports are a big contribution and those are on the rise as well (18% to be exact). Automakers such as GM are doing well and have already paid back their bailout money. But then that makes me think how bad they really needed the money.

  10. 10 Ciara Pedroncelli May 18, 2010 at 2:51 PM

    This is really interesting. This just goes to show to all of the doubters that Obama is doing something. Yes, the economy will always turn itself around in the end, but the average American does not want to wait. The government is doing the best that it can to help get the economy moving. Although the economist at the end seems to be very doubtful of it growing anymore at that rate I definitely think it is possible. When consumers feel confident they will keep buying and they will buy more. As long as people feel good the GDP will keep rising at least by a little bit and the country will keep getting further and further away from its recession.

  11. 11 Stephanie Boyle May 18, 2010 at 8:01 PM

    A rise in the GDP is definitely a good sign. This rise indicates that more is being produced which usually means that more is being bought. If more is being bought then people have more confidence in the economy. This usually leads to economic growth. But we should also be seeing an increase in employment which hasn’t really occurred yet. So this is just one step in the right direction. I think overall people believe we can make it out of this, and that is a boost in itself. All of these little improvements just increase growth and confidence.


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