US economy shrinks: What does that mean for our future?
US economy shrinks: What does that mean for our future?
In the first quarter of 2023, the US economy analyzes a slight decline in 0.2 percent, which is the second estimate of the Ministry of Commerce. A decline of 0.3 percent was previously predicted. In a comparison to the previous fourth quarter of 2022, in which the gross domestic product (GDP) grown by 2.4 percent, this decline is significant. The main reasons for the negative development are higher imports and lower issues on the part of the government, as reported by the Tagesspiegel. In the same breath, however, there were also positive impulses due to increasing investments, consumer expenses and exports.
The US Federal Reserve's US Federal Reserve was commented on the Situation and explained that despite the decline, there was no recognizable cooling of the economy. In its economic report "Beige Book", the Fed referred to solid growth tendencies. Imports rose by an impressive 42.6 percent in the first quarter, which contributed significantly to negative economic growth. Foreign trade had almost five percentage points stressful on GDP. This is particularly noteworthy, since private consumption expenditure rose by 1.2 percent - the lowest increase since mid -2023.
outlook on the American economy
The US economy has recorded above-average growth in recent years, but it is still behind the G20 threshold countries such as India and China. According to Statista, over 60 percent of those surveyed have had positive expectations of economic development since the end of 2021. These positive voices are supported by an estimated inflation rate of 2.4 percent in 2024 and by significant state infrastructure initiatives that boost government expenditure. Economic growth of around 2.8 percent is also estimated for 2024.
With a gross domestic product of an estimated $ 29.2 trillion in 2024, US economy remains the largest in the world. However, budget deficits and the public debt have also been discussed: these are estimated in 2024 at around $ 2 trillion or $ 33.4 trillion, which corresponds to $ 122 percent of GDP. The employment rate could amount to 61.9 percent in 2024, with an unemployment rate of an estimated 4.1 percent.
GDP and economic structure
The largest sector in the US economy is the service sector, which is 76.4 percent of the GDP, followed by the processing of the business and agriculture. This economic diversification supports the robust performance of the US economy, while private households are responsible for a decisive part of the consumption expenditure. Overall, consumer expenses, which were a good $ 20.2 trillion in 2022, have a significant upward development in the American economy!
In summary, it can be said that despite the current challenges, the view of the US economy, considering the dynamics of recovery and the positive expectations of citizens, remains promising. The strong position in international trade, especially the relationship with Mexico as the most important trading partner in the goods trade, also shows the resilience of the US economy in a global context.Tagesspiegel reports that ...
Statista names ...
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