The US economy grew at its highest rate in a year during the second quarter, with gross domestic product growing at an annual pace of 3.4 per cent, government data showed Friday, according to dpa. The US Commerce Department's initial GDP estimates for the quarter show the economy has benefited from rising exports after a revised annual growth rate of just 0.6 per cent in the first quarter. The growth was more than expected by analysts surveyed by Bloomberg financial news service. They had estimated an annual growth rate of 3.2 per cent for the quarter. US exports increased 6.4 per cent in the second quarter, after increasing 1.1 per cent in the first quarter, while imports declined 2.6 per cent in the April-to-June period. President George W Bush praised the increase in exports after meeting with his economic advisers on Friday. "US farmers and small business owners and manufacturers have found markets overseas for our products, products grown right here or built right here in the United States," Bush said, adding that the overseas market contributed to an increase in job growth. Personal consumption increased 1.3 per cent in the second quarter, a slower rate than the 3.7 per cent increase in the first quarter. Analysts have said the first quarter may have been the low point of recent economic growth. On Wednesday, the International Monetary Fund lowered its estimate for economic growth in the US by 0.2 percentage points to 2 per cent for the year, but said the economy looks set to reach its potential by mid-2008. US economic growth was 3.3 per cent for all of 2006 and 3.2 per cent in 2005. Revised GDP data for the quarter will be released on August 30.
