In reality al-Qaeda is at its strongest point since 9/11.

(CNSNews.com) – The State Department’s annual report on terrorism, released Thursday, echoes President Obama’s assertion that al-Qaeda is “on a path to defeat” but concedes that it remains capable of inspiring and carrying out attacks. The report also highlights how Islamist terrorists have been able to take advantage of “tumultuous events” in the Arab world, from Libya to Syria.

The 2012 Country Reports on Terrorism says that the Ayman al-Zawahiri-led group – which the administration calls the “AQ core” – has been “significantly degraded” by setbacks including the deaths of key leaders in 2011 and 2012.

Even so, it “still has the ability to inspire, plot, and launch regional and transnational attacks from its safe haven in Western Pakistan.”