US economy grows at 2.8% annual rate
The U.S. economy grew at an annual rate of 2.8% in the second quarter of 2024, according to new data from the American Economic Institute. Trade Department Released on Thursday, July 25th.
Economists had expected GDP to grow at a 1.9% rate in the April-June period, slightly more than the 1.4% growth the U.S. economy recorded in the first quarter of the year.
Consumers and businesses helped boost the economy.
According to the Commerce Department report, the sectors that contributed the most to driving economic growth in the United States are consumers and businesses, despite pressures from higher interest rates.
In this sense, the report highlights that the growth of the economy in this period accelerated thanks to the fact that small and medium-sized enterprises increased their inventories.
Overall, the state of the US economy is being affected by the presidential campaign, and although inflation is showing a slowdown, it still falls short of the Fed's 2% target.
Prices of products and services are currently still higher than they were before the COVID-19 pandemic.
Interest Rates and Forecasts
Rising interest rates are what’s keeping the U.S. economy on tenterhooks. Economists are currently expecting the Federal Reserve to make a decision on interest rates at its final meeting of the year in September.
From mid-2022 to 2023, the annual growth of the United States' GDP, as shown Associated Press, It has peaked at 2% for at least six consecutive quarters.
To highlight the good path the US economy is on, during the last two quarters of 2023, GDP grew at rates of 4.9% and 3.4%.
For now, we just have to wait and see how the economy will develop in the coming days.
You can read: IMF recommends US raise taxes, delay interest rate cuts until end of 2024
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