Page 12 University Daily Kansan, September 22, 1983
GNP up 7 percent, government says
By United Press International
WASHINGTON — The nation's gross national product is surging at a strong 7 percent rate in the current quarter on top of its 9.7 percent April-June burst of speed, the government projected yesterday.
In addition, the fundamental inflation rate still is shrinking, the Commerce Department's Bureau of Economic Analysis said.
The department's tentative first look at the July-September health of the economic recovery, dubbed its "flash" report since it is based on partial data, confirmed the best expectations of economists in and out of government.
The latest back-to-back quarterly jumps, following a weak first quarter and the 1981-82 recession, are lifting the U.S. output of goods and services to an unchanged level after inflation is subtracted. Commerce Secretary Malcolm Baldridge said.
THE CONFINUATION OF a strong economic recovery in the third quarter "puts the value of U.S. production of goods and services 1.7 percent above the previous peak reached in the third quarter of 1981," Baldridge said, making up for the recession's damage.
The GNP figures indicate "we are on a path of economic vitality we can sustain," deputy White House press secretary Laury Speakes said.
The broad GNP inflation measure, known as the "implicit price deflator," is growing at an annual rate of only 3.2 percent rate in the third quarter, even less than the moderate 3.3 percent rate in the fourth quarter, government analysts said.
If the projections hold up when full quarter data is available next month the rate of inflation throughout the economy, not just for consumers, will have been the smallest since the second quarter of 1972.
GOVERNMENT ECOCONISTS have been preparing the quarterly GNP projection four times a year since 1965, primarily for use by government agencies in estimating tax revenue, and assessing the latest economic trends.
When they produced the flash report on the second quarter they were way below the mark, forecasting growth at an annual rate of only 6.8 percent, revised in successive stages to the latest 9.7 percent rate in 1923 dollars.
Second quarter growth was last reported to have been at a 9.2 percent
"There's no indication that this recovery is significantly slowing down in the third quarter," said private economist Jerry Jasinowski, speaking for the National Association of Manufacturers.
The revisions in second quarter figures all reflected new economic strength based on more complete data.
CORPORATE PROFITS AFTER taxes in the second quarter were up a revised 17.6 percent, compared to the first quarter, and growth since the third quarter of 1975.
Even the badly bruised category of net exports showed less deterioration after revision although Baldridge said that trade remains "a major problem."
The current quarter's growth is based on a combination of increases in sales, business investment in factories, residential housing construction and the first quarterly inventory growth since the last recession began.
won't adjusting for inflation, the value of the nation's output was running at a revised annual rate of $3.272 trillion by the end of the second quarter and will increase to a rate of $3.354 trillion by the Sept. 30 end of the third quarter, the department said.
Nicaragua criticizes denial by U.S. of visas to officials
By United Press International
The Nicaraguan government yesterday criticized Washington for denying visas to Nicaraguan officials but granting one to rebel leader Eden Pastora, saying that he would use the trip to raise money to buy weapons.
Nicaragua also announced it had defeated an attempt by Pastora's group to seize Costa Rica, a stronghold in Costa Rica, killing 11 rightist insurgents.
In Honduras, U.S. troops participating in controversial maneuvers began airlifting food and supplies to 13,400 Nicaraguan Indians living in exile near tense border between Nicaragua and Honduras, the U.S. Embassy announced.
THE SOLDIERS LEFT early yesterday for the Mosquita zone in Gracias a Dios province along the Caribbean coast, where many of the estimated 13,400 Misquito, Sumos and Rama Indians from Nicaragua live.
Some 4,000 and 5,000 American troops will eventually participate in maneuvers that Nicaragua has labeled a prelude to an invasion.
The soldiers will bring the Indians enough food for three months, which will be distributed by the World Relief Commission for Refugees, the embassy said.
Honduran opposition figures have also criticized the maneuvers as opening the danger of attacks on Honduras.
THE OFFICIALS WERE invited to meet with congressmen in Washington to study U.S. election laws. They were also expected to use the trip to lobby against the administration's aid to Nicaraguan rebels.
No reason was given for the refusal. Nicaragua said
"The United States, the Reagan administration, however, has given a visa to the "traitor" Eden Pastora, to visit that country," the radio said.
Pastora, the former Sandinista assistant defense minister, leads the Costa Rican based ARDE insurgent group to visit the United States next month.
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The radio, quoting the Defense Ministry, said Pastore would undertake a campaign to raise funds to buy a campaion and ammunition to attack Nicaragua.
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