US Economic Growth Slows To 1.6% In First Quarter

US Economic Growth Slows To 1.6% In First Quarter - GlobalCurrent24.com
According to the US Commerce Department, the US economic growth slows to 1.6% in first quarter.
The US growth rate was much less than the 2.4% that analysts had generally projected. Together with a decline in exports and consumer spending, the growth rate is also dropping.
The US economy shrank in the first quarter of 2024 compared to projections, the Commerce Department announced on Thursday.
As President Joe Biden runs for reelection in November against his presumed Republican opponent, former President Donald Trump, the US economy is expected to be a key campaign issue.
US Growth Rate – All The Details
The data shows that during the first three months of the year, the US GDP grew by 1.6%. This was significantly less than the 2.4% rate that analysts had projected.
3.4% was the growth rate in the preceding quarter. Together with a decline in exports and consumer spending, the growth rate is also dropping.
The decrease in growth was also attributed by the Commerce Department to a reduction in federal, state, and local spending.
Inflation has decreased dramatically from 9.1% in 2022 to 3.5% now, but prices are still higher than they were prior to the COVID-19 pandemic, which caused global supply chains to break and consumption to slow.
Despite experiencing slower growth rates than other major industrialized economies, the US continues to have a more promising economic outlook.
The US economy is expected to grow by 2.7% in 2024, according to the International Monetary Fund (IMF), which is 0.2 percentage points faster than the previous year’s forecast.
This growth is also more than twice as high as what the IMF predicts for the other six states in the G7, which is an alliance of industrialized nations.
The biggest economy in Europe is showing signs of improvement, with consumer confidence rising as a result of wage increases, but the government of Germany still only sees 0.3% growth.
This year, the majority of the major economies that make up the G20 have seen their currencies weaken in relation to the US dollar.
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