Economic Growth Disappoints in First Quarter, But US Still Leads the World in Performance
The US economy grew less than expected in the first quarter of 2024, according to the Commerce Department. This news comes as President Joe Biden gears up for a potential re-election campaign in November against former President Donald Trump. Despite the decline in the US growth rate, the country’s economic outlook remains ahead of other major industrialized economies.
The data showed a 1.6% GDP growth in the first three months, falling short of the 2.4% predicted by analysts. This decline follows a 3.4% growth rate in the previous quarter, and is attributed to decreases in consumer spending, exports, and state, federal, and local spending. However, most G20 currencies have also depreciated against the US dollar this year.
The inflation rate has decreased to 3.5%, but prices are still higher than pre-pandemic levels, impacting consumption and global supply chains. While Europe’s largest economy shows some signs of improvement, the US still leads in economic performance with a predicted growth rate of 2.7% by the International Monetary Fund (IMF) for 2024 – up 0.2 percentage points from last year.
As the country navigates these challenges, it is likely that election campaigns will spotlight these issues and their impact on voters – particularly as they gear up for potential re-election bids against each other later this year.
