Newspanel Economy Expert Offers Three Reasons US Economy is Doing Better Than Perceived

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In a recent article posted to Newspanel, James Park sees glimmers amid the gloom, as the US economy recovers from the worst global recession in a lifetime.

US Economy Growing

Newspanel's economics commentator James Park sees reasons for optimism in aspects of US Economy. While not a robust rebound from global recession, Park still sees things to like in leading economic indicators. That's the premise of his latest commentary, “3 Reasons Why the U.S. Economy is Doing Better Than you Think” ( This includes increasing rates of employment growth, increasing use of consumer and corporate credit and a levelling off of energy prices.

“There have been already some signals showing that although the teeth of the global recession still bite deep into the nation, there's hope for the future – significant improvements may not be so far off,” said Park.

Employment growth is accelerating
The rate at which new jobs have been created in 2011 has doubled, compared to 2010, points out Park. What's more, job growth is concentrated in small businesses, the sector economists consider fundamental to the US Economy.

“Small businesses have been hiring more than 1 million people in the last 12 months. In other words...they are moving ahead despite the obstacles laid in their path by the global recession. And this can only be good for the U.S. Economy,” Park said.

Businesses and Consumers are Using Credit Again
During the recent global recession, credit markets completely dried up. So the marked expansion of credit markets evident in recent months is great news for the US Economy. “Things have improved in the last couple of months and short-term borrowing among corporations has been improving ever since the end of 2010,” said Park. “Consumers...havee begun borrowing money actively in the last seven months. In fact, between December and July, consumer credit has been continuously improving.”

This is not to say credit is rebounding to pre-global recession levels of availability. But any expansion can only be good news for the US Economy.

Energy Prices Have Finally Stopped Increasing
While steadily increasing energy prices in the first part of 2011 made economists fear a double dip recession was inevitable, prices have recently levelled off.

“There are signals that the much feared energy prices surge has stopped, at least for now,” said Park. “The issues that plague the Middle East could still lead to energy prices increases in the future, but more than likely these will be only short-lived.”

While recovery from global recession is still fragile, there may be finally reasons to hope.

“The U.S. economy, in the context of the global recession, shows clear signs that a recovery, perhaps even one as soon as the second half of this year, is not altogether improbable,” said Park.

James Park


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