Economic growth above the historic average says ERP

16 Feb '07

2 min read

The United States economic growth has been above the historic average and faster than any other major industrialized economy in the world, says the Economic Report of the President (ERP) released on February 12, 2007.

January was the 41st month of uninterrupted job growth produced by this economy, in an expansion that has thus far added more than 7.4 million new jobs. Unemployment is low, inflation is moderate, and real wages are rising, it reads.

The ERP states: "Our economy is on the move and we can keep it that way by continuing to pursue sound economic policy based on free-market principles."

While acknowledging that US economy is 'dynamic,' it says "First, we must break down barriers to trade so our workers can sell more goods and services to the 95 percent of the world's customers who live outside of our borders. Global trade talks like the Doha Round at the World Trade Organization have the potential to level the playing field so that we can compete on fair terms in foreign markets, while helping lift millions of people out of poverty around the world."

Meanwhile, the US trade deficit reached a record $763.6 billion, a 6.5 percent rise last year. All this was on the back of rising oil prices and unsatiable appetite of Americans' for imported products that outstripped fluent exports.

Consumer goods alone witnessed $35.7 billion hike revealing Americans' longing for cheap clothing, luxuries, computers and capital goods.

For example, apparel consumer price index stood at 118.6 points in December 2006 against 121.7 in the previous month, same year, indicating lower prices.

A margnial decline in the producer price index for textile and apparel sector at 124.7 was recorded for December 2006 against 125 points recorded in November, same year. Base year for consideration is 1982 at 100 points.

All said and done, ERP calls for "pursuing a variety of pro-growth policies, including those contained in the American Competitiveness Initiative and comprehensive immigration reform."

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