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White House says economy to grow despite weak GDP

by Reuters
Friday, 29 July 2011 17:40 GMT

WASHINGTON, July 29 (Reuters) - White House spokesman Jay Carney said on Friday President Barack Obama expects the U.S. economy to keep growing despite a slowing trend reflected by weak GDP numbers.

The economy grew at a 1.3 percent annual pace in the second quarter after expanding just 0.4 percent in the first three months of the year.

Carney told reporters the White House sees a lot of impact from the Japanese tsunami and earthquake as well as high energy prices on the GDP numbers.

He said the GDP numbers show the need to avoid causing more uncertainty for the U.S. economy by reaching a deal to raise the U.S. debt ceiling by Aug. 2. (Reporting by Steve Holland, Laura MacInnis and Tabassum Zakaria; editing by Todd Eastham)

Our Standards: The Thomson Reuters Trust Principles.


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