America's growth rate slows
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Economic growth in America fell back to 2.4 per cent in the second quarter of 2010, down from 3.7 per cent in the first quarter, according to the Bureau of Economic Analysis.
The BEA emphasised this was a first GDP estimate, based on source data that are incomplete or subject to further revision. A second estimate will be released on August 27.
It said the deceleration in GDP primarily reflected an increase in imports and a fall in private inventory investment, while personal consumption grew at a slower rate than the previous quarter.
The GDP figures were released on the same day that the International Monetary Fund reported that while America’s financial system is stable, risks remain.
In its report under the Financial Sector Assessment Program, the IMF implementing reforms recently signed into law is the next challenge for America.
While the report said reforms to the financial system signed into law in the Dodd-Frank Act were “an important step forward”, it adds law “missed the opportunity to streamline the complex web of agencies that oversee banks and other financial institutions”.
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