JEDDAH (Reuters) - The United States economy is expected to continue growing this year, although global recovery remains fragile, Deputy U.S. Treasury Secretary Neal Wolin said on Sunday.
Growth of the world’s biggest economy is expected to cool this year after a burst of activity late last year as challenges remain in bank lending and policy-making.
“We expect to see continued growth in 2010,” Wolin told an economic forum in Saudi Arabia.
“To be sure, we still face considerable challenges. The market turbulence in recent weeks is a reminder that the recovery remains fragile.”
The U.S. economy is expected to grow by 2.9 percent this year after an estimated contraction of 2.4 percent in 2009, a Reuters poll showed this month.
Wolin said the U.S. administration was working closely with Congress to enact regulatory reforms and he hoped it would secure passage this year. He also said the government was committed to put public finances on a sustainable track in the years ahead.
“Legislation has passed the House of Representatives. And in the next few weeks we anticipate that our Senate Banking Committee will produce draft legislation of its own,” he said. “I am hopeful that we will pass financial reform this year.”
Reporting by Asma al-Sharif and Martin Dokoupil; editing by Thomas Atkins and Ron Popeski