US economy shoots up as GDP grows 5.7 per cent in Q4

The US gross domestic product (GDP) grew at an annualised pace of 5.7 per cent in the fourth quarter of 2009, belying analysts expectations of 4.7 per cent growth, official figures from the commerce department revealed yesterday.

However, the economy shrank by 2.4 per cent in 2009 as a whole, the biggest annual decline since 1946.

The Bureau of Economic Analysis (BEA), which releases the data, however, said that the fourth-quarter advance estimate was based on incomplete information and was subject to further revision.

Growth in the third quarter was originally estimated at an annualised rate of 3.5 per cent, but was revised down to 2.2 per cent after more information was received (See: US real GDP up 2.2 per cent in Q3 as economy expands slowly).

The 5.7 per cent increase in GDP marked the best performance since the third quarter of 2003.

Christina Romer, who heads President Barack Obama's Council of Economic Advisers, said the strong growth in the fourth quarter of 2009 was "the most positive news to date on the economy".