A STILL-STRUGGLING ECONOMY The US is slowly crawling out of the worst economic downturn since the Great Depression. Unemployment has fallen but remains stubbornly high, at 7.9%, and hiring remains too slow to absorb the millions of unemployed or underemployed Americans.
Economic growth remains sluggish – 2% in the third quarter. The slightest shock – see below – could send the economy crashing down again. Among the many factors dragging on the US are the debt crisis in Europe and the resulting impact on global trade, continuing troubles in the US real estate market, uncertainty about US government fiscal policy in the near term, and concern about political gridlock in Washington. Despite all that, Americans have enjoyed spots of good news in recent weeks – modest job growth, GDP slowly picking up, signs the housing market is at last recovering, and an up-tick in consumer confidence that suggests Americans may at last be ready to open their wallets. If, as some economic forecasters now believe, a roaring economy is just ahead, Mr Obama will no doubt claim credit./