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Description
The graph above monitors the various changes in the US GDP growth rate. In the first two quarters of 2006 the growth rate stood at 3 percent. At the beginning of the third quarter the GDP grew at an ever slower rate until it hit bottom by the beginning of 2007. The following months were characterized by fluctuations. Stagnating at the beginning of the third quarter in 2008 growth turned into contraction and the GDP shrank until the end of the year.
Interpretation
These various changes can be ascribed to number of causes. Due to full order books, economic growth stood at a moderate level until the US dollar revalued dramatically resulting from the high demand for the domestic currency caused by the China. This led to a slower growth of the US GDP as foreign companies’ orders decreased. Measures taken by the US government, such as promoting exports increased the GDP growth only temporarily. With the beginning of the sub-prime mortgage crisis, the US economy fell in a serious recession. Forecasts do not predict any recovery for the coming months.
Sprache: Englisch
Sprachwissen: Muttersprachler, Kompetenz
The graph above monitors the various changes in the US GDP growth rate. In the first two quarters of 2006 the growth rate stood at 3 percent. At the beginning of the third quarter the GDP grew at an ever slower rate until it hit bottom by the beginning of 2007. The following months were characterized by fluctuations. Stagnating at the beginning of the third quarter in 2008 growth turned into contraction and the GDP shrank until the end of the year.
Interpretation
These various changes can be ascribed to number of causes. Due to full order books, economic growth stood at a moderate level until the US dollar revalued dramatically resulting from the high demand for the domestic currency caused by the China. This led to a slower growth of the US GDP as foreign companies’ orders decreased. Measures taken by the US government, such as promoting exports increased the GDP growth only temporarily. With the beginning of the sub-prime mortgage crisis, the US economy fell in a serious recession. Forecasts do not predict any recovery for the coming months.
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