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Real gross domestic product (GDP), the total output of goods and services in the U.S., increased at an annual rate of 2.4% in the first quarter of 2013, the Bureau of Economic Analysis announced.

This is the first revision for Q1 GDP and a slight decrease from original estimates of an annual growth rate 2.5%.

"With the second estimate for the first quarter, increases in private inventory investment, in exports, and in imports were less than previously estimated, but the general picture of overall economic activity is not greatly changed," the report reads.

"The increase in real GDP in the first quarter primarily reflected positive contributions from personal consumption expenditures (PCE), private inventory investment, residential fixed investment, nonresidential fixed investment, and exports that were partly offset by negative contributions from federal government spending and state and local government spending," the report adds.

Imports, a subtraction in the calculation of GDP, also increased according to the report.

The increase in Q1 GDP – unlike Q4’s paltry 0.4 – was driven by accelerations in private inventory investment, PCE, decreases in fed spending, and an upturn in exports that were "partly offset by an upturn in imports" and a "deceleration in nonresidential fixed investment."

Real personal consumption expenditures increased 3.4% in the first quarter, compared with an increase of 1.8% in the fourth, the report notes…………Remaining text not included in this sample.

"Just as the financial crisis triggered an atypical recession, the recovery cycle is unusual," Mr. Poloz said in prepared remarks for the House of Commons Finance Committee. "We need to see the reconstruction of Canada’s economic potential, and a return to self-sustaining, self-generating growth."

Mr. Poloz’s remarks were broad, offering little insight on whether he will push for a shift in the central bank’s current policy stance. He called the central bank’s inflation target "sacrosanct" and echoed long-standing central bank doctrine the exchange rates should be determined by market forces.

There is a view among some market participants that Mr. Poloz could take a different view on the dollar than his predecessor, Mark Carney, whose tenure at the Bank of Canada ended on the weekend. Mr. Poloz, who was leading Canada’s export finance agency when he was selected to lead the central bank, has boasted of visiting some 70 executives in 2012. That closeness to exporters has caused some to wonder if the new central bank governor might have more sympathy for their concerns about a stronger currency.

If that’s true, it wasn’t evident. Mr. Poloz said the exchange rate has little impact on the sales because those are determined by contracts between buyer and seller. If the exchange rate changes in the meantime, the "only thing that changes is the amount of money the company gets," in other words, profit margins, Mr. Poloz said.

The committee hearing offered the first opportunity for financial markets to assess Mr. Poloz, a surprise choice over Tiff Macklem, the No. 2 at the Bank of Canada who had built a sterling reputation as one of Canada’s most effective performers during the financial crisis. When Finance Minister Jim Flaherty introduced the new governor of the Bank of Canada last month, he offered no detailed explanation of why he had determined that Mr. Poloz was best suited for the job.

Questions from Conservative members of Parliament offered a clue. Brian Jean from Alberta and Cathy McLeod from British Columbia remarked on Mr. Poloz’s experience at Export Development Canada, which he joined in 1999 as chief economist, rising to chief executive in 2011. "I can’t think of anyone better suited for the job," said Mr. Jean. "You’re quite a success story."…….Remaining text not included in this sample

Mexico’s economy will grow 2.96% this year, according to the median estimate in the central bank’s monthly survey published today, compared with the 3.35% estimated in the previous poll. Brazil economists cut their growth forecast for a third week to 2.77 percent, according to the central bank’s weekly survey of about 100 analysts.

Growth in the two economies that make up almost two thirds of Latin America’s gross domestic product slowed in the first quarter as exports weakened and domestic demand remained sluggish. Mexico’s central bank will probably cut interest rates for a second time this year, while Brazil is raising rates as inflation accelerates, said Marcelo Salomon, the co-head of Latin America economics at Barclays Plc.

Australia's economic growth was sluggish in the March quarter, and that pace is likely to continue as the peak in mining investment looms.

Gross domestic product (GDP) grew by 0.6% in the first three months of the year, the Australian Bureau of Statistics said, below the market forecast of 0.8%.

The annual pace of growth was 2.5%, the first time it was below 3% since the last quarter of 2011.

There is evidence from the data that Australia's mining boom is moving into a new phase.

In recent years, a lot of mining and resource projects have been under construction, which was the main driver of economic growth.

That boom is expected to peak sometime in the next 12 months, but those new projects will start production and there will be a lift in exports.

It is also hoped there will be a lift in other sectors of the economy like home construction and retail spending, helped by the falling Australian dollar and lower interest rates.

JP Morgan chief economist Stephen Walters said the contribution from mining investment in the March quarter was fading with output in the mining state of Western Australia diving.

Economic growth got a boost from a lift in mining exports, helped by a temporary rise in commodity prices and a small lift in consumer spending.

"In fact, without the big boost from net exports, the economy would have contracted last quarter," Mr Walters said.

"The lack of acceleration in output growth last quarter will be unwelcome news for policy makers keen to see activity outside mining lift.……………Remaining text not included in this sample

Global brokerage Morgan Stanley said the Indian economy has come out of the trough and will grow at 6% in the current fiscal.

Sounding bullish on the stock markets, it pegged the Sensex target at 23,000 by December.

"We are confident that the economy has come out of the furrow, though the recovery will be gradual beginning the second half, and will close the fiscal at 6%," Morgan Stanley Asia Pacific economist Chetan Ahya said.

He has based his optimism on the recovery in exports which have been rising since January, apart from the election-related spends that will help drive consumption. He also pointed to the positive vibes since September last, which could help revive investments…………...Remaining text not included in this sample

A complete analysis of GDP and monthly updates for individual countries are included as part of Water and Wastewater Treatment Chemicals World Market. For more information, click on:
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