Rebound

By Isaac Cohen*

The third and final revision of US economic growth figures, by the Department of Commerce, revealed a strong rebound during this year’s second quarter, between April and June. Coming back from the perplexing fall of 2.1 percent during the first quarter, attributed to bad weather, the US economy grew, during the second quarter, at a vigorous pace of 4.6 percent.

Business investment and exports were the main factors contributing to the rebound, while consumption still lags behind because of the stagnation in wages. During the second quarter, increases in corporate profits generated business investment in equipment and construction.

Exports were the other contributing factor, stimulated mainly by the United States becoming a net exporter of liquid fuels, surpassing Russia. On account of the utilization of new technologies, US domestic oil production has increased from 5 million barrels a day in 2005, to more than 8 million barrels a day this year. Additionally, domestic oil consumption has declined, because of increased fuel efficiency, by another 3 million barrels per day. Both these domestic factors have, thus far, cushioned oil prices against abrupt price increases, which may be caused by turmoil in the Middle East. The fact is Brent oil prices have decreased 13 percent this year, preventing an oil shock capable of setting back the economic recovery.

*International analyst and consultant. Commentator on economic and financial issues for CNN en Español TV and radio. Former

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About Ramón Jiménez

Ramón Jiménez, actual Managing Editor de MetroLatinoUSA. Periodista que cubre eventos de las comunidades latinas en Washington D.C., Maryland y Virginia. Graduado de la Escuela de Periodismo de la Universidad del Distrito de Columbia. Galardonado en numerosas ocasiones por parte de la Asociación Nacional de Publicaciones Hispanas (NAHP) y otras organizaciones comunitarias y deportivas de la región metropolitana de esta capital. También premiado en dos ocasiones como Mejor Periodista del Año por la cobertura de la comunidad salvadoreña; premios otorgados por la Oficina de Asuntos Latinos del Alcalde de Washington (OLA) y otras organizaciones. Ha sido miembro del jurado calificador en diferentes concursos literarios, de belleza y talento en la región metropolitana. Ha visitado zonas de desastre en Nicaragua, Honduras y El Salvador e invitado a esos países por organizaciones que asisten a personas de escasos recursos económicos. Antes trabajó en otros medios de prensa de Virginia y Washington, D.C., incluyendo reportajes para una agencia noticiosa mundial.

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