U.S. Enters Technical Recession in Second Quarter, GDP shrinks by 0.9% in Q2

xizhimen

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U.S. Enters Technical Recession in Second Quarter, GDP shrinks by 0.9% in Q2​

U.S. GDP​

by Katharina Buchholz,
Jul 28, 2022

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The U.S. economy entered a technical recession in the second quarter of 2022. The real GDP of the country shrunk by 0.9% in Q2 according to preliminary numbers released Thursday by the Bureau of Economic Analysis. In Q1, the economy had already decreased by 1.6 percent. The current recession is so far a technical and an unusual one, as it doesn't hit all the hallmarks of economic decline. Employment, for example, has climbed as of late, while consumer spending has stagnated but not fallen significantly. However, the tightening of the funds rate by the Fed following high inflation has been a factor that has curtailed economic growth as has been the changed import behavior of U.S. companies following supply chain struggles.

The U.S. also suffered a short but deep recession in Q1 and Q2 of 2020 when it experienced the steepest decline ever recorded in the course of the coronavirus pandemic. U.S. GDP growth jumped up again in Q3 of that year, however.

The Biden administration pointed out that the official definition of a recession was not two quarters of negative growth in a row, but as pointed out by BEA "a significant decline in economic activity over more than a few months, which is assessed using several indicators, including the labor market, consumer and business spending, industrial production, and incomes." Yet, even a technical recession will further stoke fears of economic trouble that are already running high in the U.S.
 

xizhimen

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US and China are the prime movers of the world economy, if their economics are in trouble, they will take the world economy down with them.
 

xizhimen

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Biden Loses Bragging Rights Against China With US Economy Fading​

  • President had touted forecast for US to grow more than China
  • US expansion now seen slowing as inflation takes a bite

By Chris Anstey

2022年7月29日 GMT+8 上午8:13

It was a great talking point for President Joe Biden while it lasted: a forecast for the US economy to grow faster than China’s for the first time since 1976.

Biden highlighted it on a trip to Asia in May, and his national security adviser, Jake Sullivan, called it “a quite striking example of how countries in this region should be looking at the question of trends and trajectories.”

But a report Thursday showed US gross domestic product unexpectedly shrank at a 0.9% annual rate last quarter -- making it now unlikely to surpass China’s expansion this year.

Bloomberg Economics as of mid-May projected China would expand 2% this year, against 2.8% for the US -- the first undershoot since 1976. Reflecting a better-than-expected second quarter for China, and mounting evidence of a slump in the US, the team’s latest forecasts are 3.6% for China and 1.5% for the US.

 

Merzifonlu

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Wiki-liar writers have attempted to change the definition of recession! Pathetic liars.


It is not their first incident, they also wrote a lot of lies about Armenia, Syria and Iraq etc etc.
 

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they will admit to it in q4 lel they cant afford bad economic news right at mid term elections but they will admit it.
 

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