US economy grows 1.6% during first quarter

US economy grows 1.6% during first quarter

In the first three months of the year, the US economy has recorded a growth of 1.6% on the basis of gross domestic product. As per the announcement made by the US Department of Commerce, the investments and expenditures have turned out to be lower than expected in direct relation to the Iraqi war and the severe weather conditions during the winter. Despite all those adverse facts, this first quarter growth of 1.6% is still higher than the growth of 1.4% recorded in the final quarter of 2002. However same is still lower when compared with the forecasts of economists with optimistic approach, expecting a growth of even exceeding 2% for the first quarter.