US 1st-quarter GDP growth at 1.3%: Below expectations

IconCryptoNewsTerminal Staff30 May, 2024

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US 1st-quarter GDP growth at 1.3%: Below expectations

The US Department of Commerce announced that the first-quarter GDP (gross domestic product) grew 1.3%, compared to the previous quarter. This figure is lower than market expectations, which were predicting a 1.6% increase. The US GDP growth rate is announced in three stages: preliminary, provisional, and final. Today's announcement is the provisional figure. The GDP growth rate is a key indicator of the economic health of a country. It measures the total value of all goods and services produced in a country in a specific period. The first-quarter GDP growth of 1.3% is a sign that the US economy is still growing, but at a slower pace than expected. There are a number of factors that could have contributed to the lower-than-expected GDP growth. One factor is the ongoing COVID-19 pandemic, which has led to disruptions in supply chains and consumer spending. Another factor is the rising inflation, which is eroding consumers' purchasing power. Despite the lower-than-expected GDP growth, the US economy is still expected to grow in 2022. The Federal Reserve is expected to continue raising interest rates in order to combat inflation. This could lead to a slowdown in economic growth, but it is not expected to cause a recession.

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