In the first quarter of 2024, the US economy grew less than predicted, according to data from the Commerce Department. This economic performance is likely to become a major campaign issue as President Joe Biden seeks re-election in November against his Republican challenger, former President Donald Trump. The data shows that the US registered a GDP growth rate of 1.6% in the first three months of the year, significantly lower than the 2.4% predicted by analysts.
Reduced consumer spending and exports were among the factors that contributed to this slowdown. Additionally, decreased state, federal, and local spending also played a role in this decline in economic growth. Despite a significant drop in inflation rates compared to 2022, prices remain elevated compared to pre-pandemic levels, impacting consumption and global supply chains.
The fall in GDP growth rate was also attributed to a decline in exports which further impacted overall economic performance of country. While other major industrialized economies have experienced slower growth rates as well, such as Germany’s forecasted growth rate of just 0.3%, despite some positive indicators due to wage increases for consumers’ confidence but most currencies like Japanese Yen and Canadian Dollar have depreciated against US dollar this year which boosting their economy relative to others with stronger currency exchange rate.
