In the first quarter of 2024, the US economy grew at a slower pace than expected, according to data from the Commerce Department. This could pose a significant challenge for President Joe Biden’s re-election campaign against his Republican opponent, former President Donald Trump, in November. Analysts had predicted a growth rate of 2.4%, but the actual GDP growth was just 1.6%.
Despite this setback, the US economy remains ahead of other major industrialized economies. The International Monetary Fund (IMF) predicts that the US will see a growth rate of 2.7% for the entire year of 2024, which is an improvement from last year’s forecast. This puts the US significantly ahead of other G7 countries, including Germany’s growth outlook of just 0.3%.
One factor contributing to the slowdown in growth has been declines in consumer spending and exports, as well as decreases in state, federal, and local spending. Despite this challenge, most currencies in the G20 group of major economies have depreciated against the US dollar this year. While exports have played a role in slowing down growth, they are not solely responsible for it. The overall economic outlook for the country remains relatively strong compared to other industrialized states.
