Thursday, March 28, 2024
name of Prensa Latina
Bandera inglesa
English Edition
Search
Close this search box.
name of Prensa Latina

NEWS

NEWS

GDP report shows US economy shrank again in second quarter

EEUU-economía-PIB
Washington, Jul 28 (Prensa-Latina) The US Gross Domestic Product (GDP) dropped by 0.2% in the second quarter, after a 0.4% decline in the first, fueling fears that a recession may have already begun, the Bureau of Economic Analysis reported.

This is GDP´s second-quarter slowdown, which it is considered as a technical recession, according to economists, due to the financial scenario by chaining two economic slowdown quarters.

The US economy shrank as a result of the global crisis stemming from inflation, supply chain problems, declining private investment and rising interest rates, the Commerce Department said.

However, President Joe Biden´s economic advisor Jared Bernstein disagreed with this information since he asserted the GDP´s slowdown was slight in April-May-June period.

The United States´ GDP slowdown data was known following the Federal Reserve´s decision to raise the official interest rate by 0.75% for the second month in a row, without ruling out the possibility of another increase in September.

In June, the US inflation rate was 9.1%, something not seen since 1981. Figures from the Commerce Department showed that inflation forced Americans´ purchasing power to down, while Fed’s tightening of monetary policy weakened sectors sensitive to such movements, such as housing.

pll/jcm/crc/yap

LATEST NEWS
RELATED