U.S economic growth at 3.2%

U.S economic growth at 3.2%bigstock-Business-graph-with-upward-arr-16975754resized

The U.S Commerce Department has stated that in the final quarter of 2013, the national economy grew at an annual rate of 3.2%.This year the country is forecast to have the strongest growth since the recession ended in 2009.

The recovery of the world’s largest economy can be marked by the continued quantitative easing of the Federal Reserve’s economic stimulus.

Bond purchases are being cut by $10bn a month, reducing the programme to $65bn from the initial $85bn. This stabilises low long-term interest rates and boosts economic activity by attracting inward investment.

Consumer spending has also been increasing although this could be affected if interest rates rise.

In addition to the annual growth rate of 3.2%, the U.S Commerce Department also reported that the U.S economy grew by 1.9% in the year 2013. This is significantly less than the 2.8% growth demonstrated in 2012 but expansion was restricted by spending cuts and increased federal taxes.