Don’t miss the latest developments in business and finance.

US economy moving in right direction: Obama

Image
Press Trust of India New York
Last Updated : Jan 21 2013 | 12:29 AM IST

With the world's largest economy climbing out of recession, US President Barack Obama has said there are clear signs that his government's efforts to stimulate the economy were moving in the right direction, though there are challenges ahead.

In his weekly address on October 31, Obama said: "I am pleased to offer some better news that -- while not cause for celebration -- is certainly reason to believe that we are moving in the right direction."

The US climbed out of recession as it grew by 3.5 per cent in the third quarter ending September 30 -- the first quarterly expansion in a year.

Besides, an independent federal board reported last week that nearly 650,000 direct jobs have been saved or created because of the various stimulus programmes.

"We can see clearly now that the steps my administration is taking are making a difference, blunting the worst of this recession and helping to bring about its conclusion," he said.

He, however, cautioned there is a long way to go before the United States returned to prosperity and said the economy is likely to see further job losses in the coming days.

More From This Section

Unemployment hit a 26-year high of 9.8 per cent in September and the October report due next week could show it topping 10 per cent.

The American Recovery and Reinvestment Act has created and saved more than one million jobs. "That's more than a million people who might otherwise be out of work today," he said.

"It took years to dig our way into the crisis we have faced. It will take more than a few months to dig our way out," he said, adding that "make no mistake: that's exactly what we will do."

America is the latest advanced economy to shrug off recession after Germany, France, Japan and Singapore.

Also Read

First Published: Nov 01 2009 | 5:06 PM IST

Next Story