In the first quarter of 2024, the US economy grew less than expected, according to the Commerce Department. This news is likely to be a key issue in President Joe Biden’s re-election campaign against his likely opponent, former President Donald Trump in November.
The US GDP grew by 1.6% in the first three months of the year, lower than the 2.4% predicted by analysts. The growth rate in the previous quarter was 3.4%. Despite a significant drop in the inflation rate to 3.5%, down from 9.1% in 2022, prices are still higher than pre-pandemic levels, affecting consumption and global supply chains.
Factors contributing to the decline in growth include decreased consumer spending, exports, and state, federal, and local spending. The economic outlook for major industrialized economies is not as positive as that of the US. While Germany has seen slight improvements in economic indicators, most major currencies in the G20 group have depreciated against the US dollar this year.
However, despite these challenges, there are some bright spots for the US economy. The IMF predicts a 2.7% growth rate for the US in 2024, higher than that of other G7 countries such as Japan and Italy. Additionally, most major currencies in the G20 group have depreciated against the US dollar this year due to factors such as trade tensions and political instability in various countries around
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