'US economy grew at 2.8 % in 4th quarter, real GDP rose by 1.7% in 2011'

Washington, Jan 28(ANI): The US economy grew at 2.8 percent in the last quarter of 2011, while the real gross domestic product rose by 1.7 percent for the entire year, the administration has said.

Though the figures showed an improvement from the 1.8 percent rise in the third quarter of 2011, it felt short of the Wall Street consensus forecast of 3.0 percent.

The figures indicated the U.S. economy could not significantly reduce the unemployment rate below its current 8.5 percent despite growing at its fastest pace since the middle of 2010.

But it is notable that the US economy experienced growth in 2011 despite the March 11 earthquake and tsunami in Japan, the European financial crisis and the overthrow of governments in Egypt, Libya and Tunisia.

"Faster growth is needed to replace the jobs lost in the recent downturn and to reduce long-term unemployment," Politico quoted White House Council of Economic Advisers chief Alan Krueger, as saying.

House Majority Leader Eric Cantor (R-Va.) pointed out that that economic growth was stronger in 2010 when GDP rose by three percent.

Macroeconomic Advisers, a forecasting firm has projected that the US economy will grow at an annual rate of 1.9 percent in the first quarter of this year. (ANI)