International Forex Inforamtion

(RTTNews) - President Barack Obama said Friday's gross domestic product figures show that the $787 billion economic recovery and stimulus bill passed earlier this year is succeeding in slowing the nation's recession.

The economic figures released Friday showed that the GDP shrank by 1 percent in the second quarter of 2009, less than the 1.5 percent predicted by many economists.

"This morning, the GDP revealed that the recession we faced when I took office was even deeper than anyone thought at the time. It told us how close we were to the edge," Obama said. "But the GDP also revealed that in the last few months, the economy has done measurably better that we had thought -- better than expected."

The stimulus and recovery bill, along with other measures taken by the administration, Obama said, "have helped us put the brakes on the recession," pointing to efforts to help homeowners, spur lending for families and small businesses, tax cuts and extensions to unemployment benefits.

However, Obama noted that unemployment was still worse than had been initially projected.

"I realize that none of this is much comfort to those Americans who are still out of work and struggling to make ends meet," Obama said. "And when we receive our monthly jobs report next week, it's likely to show that we're still continuing to lose far too many jobs."

He added, "As far as I'm concerned, we won't have a recovery as long as we keep losing jobs. And I will not rest until every American who wants a job can find one."

But economic growth is an essential precursor to job creation, Obama said.

"Today's GDP is an important sign that the economy is headed in the right direction and that business investment, which had been plummeting in the last several months, is showing signs of stabilizing," he said. "This means that eventually, businesses will start growing and they'll start hiring again. And that's when it will truly feel like a recovery to the American people."

Obama urged the American people to have patience, saying that recovery may take "many more months." He also emphasized the need to transform the economy in to one of "robust growth" based on a trained workforce and clean energy.

"I will continue to work every single day and take every step that's necessary to make sure that happens," he said. "I also intend to make sure that we don't return to an economy where our growth is based on inflated profits and maxed-out credit cards -- because that doesn't create a lot of jobs."

Obama pointed to the "Cash for Clunkers" program, which offers tax credits to those who trade in old cars for newer, more fuel-efficient models, as an example of the approach the country needs to take.

The program has proved so popular and successful that the House voted Friday to add another $2 billion to the program to keep it from running out of money months before it was scheduled to be brought to a close.

"This gives consumers a break, reduces dangerous carbon pollution and our dependence on foreign oil, and strengthens the American auto industry," Obama said. "I'm happy to report that it has succeeded well beyond our expectations and all expectations, and we're already seeing a dramatic increase in showroom traffic at local car dealers."

He added, "I am guardedly optimistic about the direction that our economy is going. But we've got a lot more work to do. ? This administration will not rest until the movement that we're seeing on the business side starts translating into jobs for those people and their families."
President Barack Obama said Friday's gross domestic product figures show that the $787 billion economic recovery and stimulus bill passed earlier this year is succeeding in slowing the nation's recession. The economic figures released Friday showed that the GDP shrank by 1 percent in the second quarter of 2009, less than the 1.5 percent predicted by many economists.