Daily Management Review

Fastest Quarterly Growth In Four Years Reached By US Economy In Q2


07/29/2018




Fastest Quarterly Growth In Four Years Reached By US Economy In Q2
The commerce department of United States announced that the country had notched an annual rate of 4.1 per cent in the second quarter of 2018 which is the fastest in the last four years
 
This rate of growth would be a booster for the Trump Administration that launched a $1.5tn tax cuts during the beginning of the year and had claimed that the amount of would be recovered through economic growth.
 
Before the announcement of the growth rates, a teaser about the possible good news was issued by Donald Trump. Trump told a rally in Illinois: “Somebody actually predicted today 5.3[% growth]. I don’t think that’s going to happen ... if it has a four in front of it, we’re happy”, thereby breaking away from a tradition among president of not commenting on market sensitive government releases before they are actually made public.
 
The figures were called “amazing” by Trump at a press conference on Friday. “These numbers are very sustainable, this isn’t a one-time shot,” he said. The next report expected to come from the commerce department in October, sometime before the forthcoming midterm elections would be “outstanding”, he said.
 
“We’ve accomplished an economic turnaround of historic proportions,” he said. “Once again we are the economic envy of the entire world.”
 
But according to economists, this spurt in growth could be unsustainable and that there is proof that the advantages of the mini-economic boom have primarily been accorded to the wealthiest Americans in a disproportionate manner.
 
It was back in 2014 when the US economy had grown at a comparable rate of 5,2 per cent in the third quarter of that year. 
 
Rising consumer spending, exports and business investment had driven the economic growth in the second quarter, showed data from the commerce department. There was a growth of 4 per cent in the consumer spending in the last quarter compared to just 0.5 per cent in the January to March period. Growth in business investment was 7.3 per cent.
 
It might b difficult for the economy to maintain the rate of growth because in the whole of 2017 the economy grew 2.3 per cent and over the last 14 years, the growth in GDP has not crossed the 3 per cent mark. There was a growth of just 2.2 per cent at the annual rate in the gross domestic product (GDP) in the first quarter of the year which means that the average for the six months is 3.1 per cent.
 
The second quarter now occupies a strategic position – having come soon after the tax cuts by trump but before the impact of the tariffs that rattled global trade. 
 
(Source:www.theguardian.com)






Science & Technology

WHO found no danger in microplastics in drinking water

Apple starts testing Chinese OLED screens for iPhone 12

Analysts: Google Search is losing clicks

Microsoft admits wiretapping users

French Optic 2000 unveils smart glasses

You Can Wear Your New Air Conditioner With Your Clothes

Research: Anonymous data is not so anonymous anymore

Tech giants face stricter government regulation in the US

Nestle's Head: Veggie meat is new megatrend

Huawei may introduce Android replacement in August

World Politics

World & Politics

Canada Blamed By China For Difficult Bilateral Relations

European Social Democrats are losing ground

Hong Kong's richest citizen calls to stop violence and unrest in the city

UK railway operators exit Interrail system

Dozens of British Airways flights canceled or delayed due to computer malfunction

China keeps importing Iranian oil in spite of US sanctions

Marijuana legalization: Did Canada benefit from cannabis boom?

Republicans and Democrats focus on carbon pricing