United States: GDP contracted in the second quarter

&Eacute United States: GDP contracted in the second quarter

US GDP contracted 0.6% in the second quarter.

In the second quarter, the gross domestic product (GDP) of the United States contracted by 0.6% at an annualized rate, which is a little less than initially announced. However, it remains in decline, risking to plunge the world's largest economy into recession.

The Commerce Department's second estimate released on Thursday is 0.3 points higher than the first estimate (-0.9%), published at the end of July.

In the first quarter already, GDP had fallen by 1.6%.

The commonly accepted definition of a recession is two consecutive quarters of decline in GDP, but many economists, as well as the Biden administration, argue that the economy is not necessarily in decline. recession given other more favorable indicators, such as the job market, which remains dynamic.

In its report, the Commerce Department emphasizes that the difference between the first and second estimates are mainly related to the fact that consumer spending (+1.5%) was better than initially estimated and inventories weighed less than expected.

Spending by state and local governments has also been higher than originally estimated.

The United States favors measuring the GDP at an annualized rate, which compares to the previous quarter then projects the evolution over the year in third. Other advanced economies simply compare to the previous quarter.

Leave a Reply

Your email address will not be published.

Previous post Putin orders to expand the Russian army by 137,000 new soldiers | War in Ukraine
Next post Half of China hit by drought