The economy grew at a 5.7 percent annual pace in the last quarter of 2009, a GDP report out last Friday indicated. This is up from the 1.5 percent growth in the previous quarter, marking the second consecutive quarter of growth.
 

5.7 percent is a torrid rate of growth compared to the 3 percent average annual growth for mature developed economies such as the U.S. However, despite the higher than expected growth experienced at the end of the year, analysts and economists both remain pessimistic. The stock markets reaction indicated it also, was less than impressed, actually losing ground.
 

So why such pessimism after two straight quarters of growth? The answer is that the numbers aren’t as rosy as they look.
 

When economic spending slows, businesses also slow on inventory stocking, so their inventory levels begin to deplete. Eventually businesses will have to restore inventory levels and the spending that comes from that gives a large economic boost, but if the economy has not returned–it is only a one-time boost.
 

According to the Commerce Department’s report, business inventory re-stocking accounted for 3.4 percent of the GDP figure. Excluding the re-stocking the economy only grew at a 2.2 percent clip.
 

This is depressing for individuals hoping to see the sky-high double digit unemployment rate decline, because the report indicated that to reduce it by only one percent, the economy would have to continue its torrid pace of the last quarter of 2009. This is unlikely with business inventories re-stocked and government stimulus fading.
 

Most economists believe the current quarter’s growth will be much more down to earth around 2.5 percent, and expect the full year’s growth to be slightly less than that, keeping the unemployment over ten percent for most of the year.
 

President Obama offered initiatives to help small businesses, the growth engine of the economy, to continue the economic recovery. He proposed using remaining funds from the bank bailout in 2008 as credit for small businesses, and offering a $5,000 tax credit for every individual small businesses hire in 2010.
 

 If those measures were passed it would still not address the consumer, who has been scared into submission by high unemployment and stagnant wages. Consumer spending accounts for two-thirds of the U.S. GDP and will be essential for the economic recovery to pick up.