Photo: Mark Ralston Agence France-Presse
For the main economic adviser of the White House, Larry Kudlow, this performance means that “policies are working, such as lower taxes, deregulation, reform of the trade”.
The growth of the United States, which remained stronger than expected in the last quarter, has nearly reached in 2018 the goal of 3 % referred to by president Donald Trump.
According to data from the Commerce department Thursday, the expansion of the GDP grew by 2.9 % year on year, the highest level since 2015, after 2.2% in 2017. It is necessary to go back to 2005 to have a higher rate. “Our economy has never been better. Here is a country that has never done it as well, ” responded the president Trump while he was in Alaska upon his return from Vietnam.
“This is what I call a year with 3% growth “, was delighted on the channel CNBC the chief economic adviser to the White House, Larry Kudlow, while Donald Trump has promised an expansion to 3 %, or more, over several years. “This means that policies work, such as lower taxes, deregulation, trade reform,” said Mr. Kudlow, citing a few key measures sought by the republican president.
It is the growth of u.s. GDP in 2018, according to data from the department of Commerce.
The strength of growth in the last year has been brought in effect by the stimulus budget of the government Trump with the tax reductions and spending increases in the defense in particular. “This acceleration is not a surprise given the fiscal stimulus introduced last year,” noted Paul Ashworth, chief economist for Capital Economics.
For the fourth quarter alone, the world’s largest economy recorded an expansion of 2.6 % annual rate, according to the first estimate of the department subject to revisions. This is more than the average projection of analysts (2,3 %), although this represents a slowdown compared to the expansion in the third quarter (by 3.4 %). The shutdown of the government, which has been closed partially and the administrative services of the 22 December to 25 January due to a standoff on the funding of the wall that Donald Trump wants to build the southern border with Mexico, has had a limited negative effect.
The figure of the last quarter of 2018, which is released with a month delay (due to the shutdown), while the first quarter of 2019 is already well advanced, shows a slowing of the progression of the consumption, the locomotive of growth. The expenses of the Americans have advanced 2.8 % instead of 3.5% three months earlier, a pace which, however, remains supported. “To sum up, the slowdown in growth is much less strong that it was expected, but it is now in the market,” said Jim O’sullivan of HFE.
For 2019, the White House update yet still on an expansion of 3 %, as was recently said Kevin Hassett, an economic adviser to the White House.