Economic growth slows to 1.3% due to severe drought
The United States Commerce Department announced Thursday that the economy grew only by 1.3 percent in the second quarter this year. They said that this is evidence that the recovery came close to stalling.
The revision is down from what the government reported in August of a 1.7 percent growth rate. The report has shown that efforts to improve the unemployment rate have still not worked. The unemployment rate has continued to stay between 8.1 and 8.3 percent all year.
Much of the growth has been down-graded because of the nation’s worst drought in 50 years. Farmlands have been hit hard and are struggling to put enough crops together to cover their costs. The government announced in August that the drought was officially the largest natural disaster in U.S. history.
However, the news in the report was not all bad. The Bureau of Labor Statistics revised the employment numbers to show that there was a 0.3 percent increase – officially making President Obama a net job creator over his tenure.
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“With just 40 days to go until the election, the weak growth figure was sure to take on a strong political resonance. Mitt Romney has battered President Obama for failing to foster a robust recovery and has pinned the economy’s weak jobs growth on his policies. Mr. Obama has conceded that the recovery has been anemic, but has argued that his administration put the economy on the right track after the worst recession since the Great Depression.” – Annie Lowrey | New York Times