According to the latest figures released, the American economy has grown at the rate of 1.7 per cent during the second quarter of the year, which is faster than most forecasts for growth for the economy.

The faster than expected growth in the world's largest economy has driven away fears that the country is slipping into a recession but experts said that it needs more time to return to the pre-crisis momentum. The authorities are seeing the economy is the modest growth trajectory and do not when it might pick up pace to benefit from large stimulus efforts of the central bank.

The data released by the Commerce Department showed that the economy adjusted for inflation, expanded at a better-than-expected annual rate of 1.7 per cent during the quarter from April to June, 2013. Experts have pointed out that faster job creation in recent months, stabilising housing market and stronger stock markets have improved the investment and retirement accounts for several people in the country.

The economy is still facing the impact of automatic cuts in federal spending and higher taxes in the country. The Federal Reserve has assured that it will not roll back its stimulus package if the situation worsens in the economy.