Page 7 - aruba-today-20170130

A7
U.S. NEWS Monday 30 January 2017

US Financial Front:
Economic growth slowed in Q4, but there’s hope ahead

Republican-led Congress. fourth quarter after add- ter from a 3 percent gain in
For the fourth quarter, the ing 0.9 percentage point the third quarter. But busi-
biggest factor contributing to growth in the third quar- ness investment spending
to the slowdown was a wid- ter. A higher trade deficit accelerated in the fourth
ening in the trade deficit. subtracts from economic quarter, rising at a 2.4 per-
Exports, which had been growth because it means cent rate, the best showing
temporarily bolstered by a more production is being in more than a year. That’s
surge in sales of soybeans supplied from abroad. a hopeful sign that a pro-
to Latin America, retreated Consumer spending, which longed slowdown in invest-
in the fourth quarter. Mean- accounts for 70 percent of ment spending, reflecting
while, imports surged. economic growth, slowed in part big cuts by energy
Trade cut 1.7 percentage to still-solid growth of 2.5 companies, is coming to
points from growth in the percent in the fourth quar- an end.q

Construction personnel work on a building project just south of
Chicago’s Loop. The U.S. economy lost momentum in the final
three months of 2016, closing out a year in which growth turned
in the weakest performance in five years, according to informa-
tion released Friday, Jan. 27, 2017, by the Commerce Depart-
ment.
(AP Photo/Charles Rex Arbogast)

M. CRUTSINGER For all of 2016, the economy
AP Economics Writer grew 1.6 percent. It was the
WASHINGTON (AP) — The worst showing in five years
U.S. economy lost mo- since a similar 1.6 percent
mentum in the final three gain in 2011. GDP grew 2.6
months of 2016 as a down- percent in 2015, and since
turn in exports temporar- the recession ended in
ily depressed activity. But mid-2009, growth has aver-
there were hopeful signs aged a weak 2.1 percent.
in housing and business But analysts believe there
investment that the econ- were signs in Friday’s report
omy will rebound in the of a rebound in business
coming months. spending and housing ac-
The gross domestic product tivity, which could lead to
grew at an annual rate of stronger growth in 2017 of
just 1.9 percent in the Oc- around 2.5 percent.
tober-December period, a President Donald Trump
slowdown from 3.5 percent has set a goal of doubling
growth in the third quarter, growth to 4 percent in
the Commerce Depart- coming years through an
ment reported Friday. GDP, ambitious stimulus program
the broadest measure of featuring tax cuts, deregu-
economic health, was held lation and higher infrastruc-
back by a swing in trade ture spending.
with exports of soybeans Private economists believe
plunging in the fourth quar- sustained annual growth
ter after having surged in rates of 4 percent will be a
the third quarter. high hurdle, given under-
“If you smooth out the lying trends such as slow
volatility in soybeans, you growth in the labor mar-
get growth of around 2.5 ket and weak productivity.
percent in the two quar- However, many analysts
ters,” said Nariman Beh- have been boosting their
ravesh, chief economist at forecasts believing that
IHS Markit. “We really didn’t Trump will succeed in get-
have a slowdown at the ting at least a portion of his
end of the year.” program approved by a