On Tuesday, the Commerce Department released revised GDP figures that showed third quarter growth at 5%, the strongest third-quarter growth in eleven years.
Markets reacted positively with the Dow Jones Industrial Average hitting 18,000 for the first time ever.
As Forbes notes, one factor helping to spur growth is lower oil prices, which mean more money in consumers’ wallets. On Monday, Saudi Oil minister issued startling comments stating OPEC is prepared to allow oil prices to fall to $20 a barrel if necessary to stave off competition from fracking and shale oil production.
Such a price and production war among oil producers would set up the grandest of ironies: President Barack Obama would receive economic credit for outcomes fueled by the very energy initiatives he and his supporters staunchly oppose.
Whether such gains will materialize, however, remains unclear. As the Wall Street Journal notes, the GDP’s solid showing stands “in contrast to worries about a slowdown in other parts of the world, including China, Japan, and members of the eurozone.”