The United States economy has slowed and no longer outpaces growth in several of the other major industrial countries. Now growth is more evenly distributed around the world. Growth quickly showed signs of recovery after the 2001 recession, but did not really pick up speed until the first quarter of 2003. And the economy as measured by GDP has shown healthy gains since then. While the U.S. maintains its position as a preeminent engine of growth, now the burden is more evenly distributed with both Europe and Asia contributing.

The United States grew at a slower pace in the first half of 2007 when measured by a year over year percent change basis. And in the third quarter, gross domestic product suggested a rebound despite the onset of the credit crunch in mid-August. With the economy expected to slow thanks to the housing market decline and financial market woes, the U.S. outlook remains clouded at best. Exporting countries such as Japan and Germany continue to look to the U.S. as the main fount of growth but are now looking for alternative markets to take up the slack.

Updated December 5, 2007