US economy weakest in five years

Washington: US growth skidded lower in the fourth quarter and was the weakest in five years for all of 2007, according to a government report yesterday that highlighted the toll an enfeebled housing sector has taken on the national economy.

The Commerce Department said gross domestic product, which measures total goods and services output within US borders, edged up at a weaker-than-expected 0.6 per cent annual rate in the fourth quarter and for the full year advanced only 2.2 per cent - the slowest growth in annual GDP since 1.6 per cent in 2002.

Analysts had forecast that fourth-quarter GDP would grow at a 1.2 per cent rate. The lacklustre fourth quarter performance followed a booming third quarter when GDP surged at a 4.9 per cent rate and is likely to fuel fears the economy is at risk of tumbling into recession in 2008.