The American economy in the first quarter of 2017 rose 0.7% on the previous quarter, announced the government’s Bureau of economic analysis of the United States in its first estimate of GDP of the three. This is the weakest growth since the beginning of 2014, follows from the statistics Department. Economists polled by Reuters and The Wall Street Journal (WSJ), expected economic growth of 1-1,2%.
American statistical service publishes estimates of GDP in terms of annual growth, adjusted for seasonality (seasonally adjusted annual rate, SAAR). This means that the actual GDP growth in the first quarter amounted to only about 0.2%.
The main reason for weak growth — deceleration in consumer spending: they grew by only 0.3% in terms of annual pace, this slow growth not seen since the end of 2009. In the composition of consumer spending, purchases of durable goods such as cars, washing machines or refrigerators, and it decreased by 2.5%. Played the role of the warm winter this year, which reduced the thermal energy consumption, notes the WSJ.
The US economy historically grows slower in the first couple of quarters than in the later: over the past 30 years the average growth in January—March was 1.87% compared to the annual average growth rate of 2.7% reported by CNBC in 2015, citing its own analysis. The data for the first quarter of 2017 may underestimate the dynamics of the American economy, given that the labour market close to full employment, indexes of consumer confidence are at multi-year highs, and the stock market is steadily growing.
As trump fulfill election promises
The US withdrawal from the TRANS-Pacific partnership
The construction of the Keystone XL pipeline
To protect the American market
On 18 April signed a decree “Buy American, hire Americans”
The renegotiation of NAFTA
Ordinances to revise the agreement, not signed
Health care reform/ repeal Obamacare
24 March from Congress revoked the bill to replace Obamacare, signed on inauguration day
In the process
The tightening of immigration legislation
January 27 signed a decree on “extreme selection” of immigrants, according to which the country restricted the entry of migrants, stopped the program of reception of refugees. March 15, a Federal judge in Hawaii blocked the decree. March 30, the court extended the ban indefinitely.
In the process
The fight against illegal immigration
On 25 January signed a decree on strengthening border patrol and increased deportations. In February a series of deportations of illegal immigrants across the country.
The construction of the wall on the border with Mexico
On 25 January signed a decree on the construction of the boundary wall. Announced a project competition
The exit from the Paris climate agreement
Trump has decided not to withdraw from the agreement under the influence of his daughter Ivanka and her husband Jared Kushner.
The introduction of China in the list of currency manipulators
USA refused to declare China and other trading partners foreign exchange manipulators
However, even if we consider that the economy will accelerate in the following quarters, the US President Donald Trump would be difficult to keep his promise and to accelerate annual GDP growth to 4%, says Reuters.
Public expenditure that are considered in the composition of GDP, declined with an annual rate of 1.7%, including defense spending, which fell by 4%. In January one of the first decrees trump was a resolution to suspend the recruitment of Federal employees with the aim of restructuring the sprawling state apparatus, which may partly explain the reduction of government spending in the first quarter.
Bright spots in the statistical report were the increase of business investment in buildings, equipment and intellectual property 9.4% (highest since end of 2013), the growth of investment in housing construction by 13.7% and increase U.S. exports by 5.8%.
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