January 30, 2008


Statement on Last Quarter’s Economic Growth

Senator Chris Dodd (D-CT), Chairman of the Committee on Banking, Housing and Urban Affairs, today issued the following statement in reaction to the Bureau of Economic Analysis (BEA’s) announcement of the 4th Quarter Gross Domestic Product (GDP) numbers for 2007, which indicated 4th quarter growth slowed to 0.6%, a sharp contrast with the almost 5% growth from the previous quarter: “The drop in the GDP confirms what economists, businesses, policy makers, and individuals across the country have all been saying – that the economy is experiencing a dramatic slowdown. This information underscores the need to stimulate the economy in aggressive, innovative, and responsible ways that directly address the root cause of the problem, and I will continue to contribute to ongoing efforts in Congress to that end. “The building of houses, condominiums, and other non-commercial properties often drives a lot of wealth and job creation into our economy, which is why I am particularly concerned by the almost 24 percent contraction in the residential construction element of the GDP. The housing component of our economy has now been shrinking every quarter for two years. The root of the economic crisis is the housing crisis, and the root of the housing crisis is the foreclosure crisis. This is why I have called for any economic stimulus package presented to the President to address the problems in the housing and mortgage markets, and will continue to work on both short-term and longer-term solutions to put our economy back on the right track.”