The US economy grew less than expected in the first quarter of 2024, 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.
Data shows that 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%. Factors contributing to the decline in growth include decreased consumer spending, exports, and state, federal, and local spending.
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. The US economy’s growth rate has declined, partially due to a decrease in exports.
The US economic outlook is better than other major industrialized economies. The IMF predicts a 2.7% growth rate for the US in 2024, higher than that of the other G7 countries. While Germany has seen slight improvements in economic indicators, the government forecasts only a 0.3% growth rate.
In addition, most major currencies in the G20 group have depreciated against the US dollar this year. These economic trends will be important to monitor as the US continues to navigate its recovery from the impacts of the pandemic.