The U.S. Department of Commerce has released figures which show that the economic growth in the United States in the last quarter was revised down to a 2.1% annual rate. This marks a significant decline from the previous 2.9% rate reported in May, and shows a further slowing of economic activity across the world’s largest economy.
The revisions are attributed to the effects of the ongoing trade war with China, with exports and business investments both taking a hit. There are also other causes such as a reduced demand for consumer goods, increased tariffs on consumer goods, and a further slowdown in industrial production due to the impact of the coronavirus pandemic.
The decline in economic growth is a worrying sign for the United States, as it suggests that the economy is not responding as favorably as expected to the recent tax cuts and stimulus measures implemented by the Trump administration. It is also feared that the slow growth rate could lead to a potential recession in the near future.
In spite of the worsening outlook for the United States, the White House is pushing forward with its economic policies, which are aimed at bolstering growth across the country. The aim is to reduce the impact of the trade war with China, as well as provide relief to businesses and consumers that have been affected by the economic downturn.
Despite the downward revision of economic growth in the last quarter, there is some hope that the situation could improve in the near future. It is expected that the second half of 2020 could see some economic revitalization, especially if the coronavirus pandemic is brought under control. This could lead to a rebound in the US economy, and may even bring the growth rate back to the early levels seen before the pandemic.
Clearly, the recent revisions to US economic growth paints a rather pessimistic picture, however, it is important to remain hopeful. If the fiscal measures being implemented by the Trump administration prove successful, then it is possible that the US economy could stage a strong recovery in the near future.
