Economic growth at 4.4% for 2004
January 30, 2005
Treasury figures reveal that the US economy grew at a confident 4.4% over 2004, the highest growth rate since 4.5% growth in 1999. Although fourth quarter growth was reported at slightly less than market predictions, at 3.2% instead of an estimated 3.5%, the reports otherwise come as a relief to markets already uneasy at the current cycle of devaluation of the dollar.
Consumer spending was a key engine behind the 2004 growth figures, and was the highest since 2000, despite an overall 1.5% rise in core prices, particularly affected by oil price increases.
In a further show of recovery, 2.2 million extra jobs were created over 2003, and investment in business equipment and software was the highest since 1997.
The news can only help soothe market concerns about the state of the economy, after particular worries over the devaluation of the dollar over the past 3 years has seen central banks look to other currencies, such as the euro, for reserve funds.
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