The U.S. economy grew a meager 0.1% in the first three months of the year, according to a preliminary estimate by the Commerce Department, versus 2.6% in the fourth quarter of 2013. Harsh winter weather in the Northeast has been largely cited as the reason for lackluster growth; the cold and snow has caused retailers, airlines and food producers to report lower first-quarter profits.
Ken Rogoff, a former chief economist at the International Monetary Fund and currently a professor of economics at Harvard University, says he expects the economy to expand at a 3% annualized rate in the second half of the year. He told The Daily Ticker's Lauren Lyster at this week's Milken Institute Global Conference that the U.S. economy may not be the "engine of growth" but it "does not look so bad" compared to other nations' economic output.
According to the IMF's latest forecast, the U.S. economy is providing a “major impulse to global growth" and will expand 3% this year and in 2015.
"The U.S. is doing better, so let's hope the U.S. pulls everyone else along," says Rogoff. He does point out that all major economies are still struggling to return to their pre-financial crisis growth levels.
Rogoff and fellow economist Carmen Reinhart analyzed eight centuries worth of economic data and concluded that recoveries after financial crises tend to be slower than others.
Watch the video to see why Rogoff calls the U.S. a "garden variety financial crisis."
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