Saturday, March 25, 2023

US economy comes out of recession and grows 0.6% in third quarter

The economy of the United States of America (USA) left after the fall from the technical recession and grew again in the third quarter of 0.6%, according to data from the Bureau of Economic Analysis (BEA) that occurred today.

The annual growth rate also stood at 2.6%, according to the first official calculation by this development office of the gross domestic product (GDP).

The main economy of the world had described a fall of 0.4% and 0.1% in the first two quarters of the year, respectively, which is considered a technical recession.

The increase in GDP from July to September was due to an improvement in exports and consumer spending, as well as non-residential investment and federal, state and local public spending, which partially offset the decrease in residential investment and other investments.

In a more detailed analysis, the BEA shows that there are many parts of the economy that are still not recovering, such as domestic consumption at a time marked by increased inflation.

Statistics explain that consumption is improved due to a rise in services, such as health expenses or travel, although the consumption of goods has fallen.

In the event, it is mainly distributed in cars, and also that which is intended for food and drinks.

The increase in public spending is generated by higher defense spending on behalf of the federal government, and an increase in employee compensation for state and local governments.

The drop in residential investment was marked by family construction and lower commissions from real estate agents.

But the investment is often reflected in the trade.

The return of economic growth in this third quarter occurs in a context marked by high inflation, and it arises from interest or problems in the supply chain, but also through unemployment and the strengthening of the dollar.

The BEA does not dare to calculate the effects that these have had, whether positive or negative, on GDP, and warns that this is the first factor in economic developments, which may vary in subsequent calculations.

Moreover, today’s most positive data, which exceeds economic and market expectations, gives the administration led by Joe Biden a breather at a key political moment, less than two weeks before the midterm elections.

The state of the economy and high inflation are precisely the two factors that will weigh the most on the American vote, according to several polls.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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