The US government confirmed on Thursday The country’s economy contracted by 0.1% in the second quarter of the year and contracted by 0.6% annually..
This is stated in the third and final official calculation of the country’s economic evolution published by the Bureau of Labor Statistics (BEA), which confirms the technical recession of the world’s largest economy. It fell for two consecutive quarters – 0.4% from January to March and one-tenth from April to June –.
The BEA recalled that this data was produced in the context of high inflation and increases in interest rates, and to overcome this and with other challenges such as: supply chain issuesAlthough it is positive, the low unemployment rate is striking.
However, he warned of the implications of all these factors. cannot be calculated separately when making an economic forecast..
According to these statistics, the decline in the second quarter mainly reflects decreases on the investment side, both private and residential, and on the side of both federal and state or local public spending.
Declines partially offset by increases in exports and consumer spending.
Imports also rose, It negatively affects the GDP calculation.
Although the government led by Democrat Joe Biden has always insisted that the United States is not in a recession, the two-quarters drop in GDP confirms the technical recession of the world’s leading economy.
The United States has been trying to contain prices for months, and the Federal Reserve approved it last week. Fifth consecutive increase in interest ratesalready in the range of 3% to 3.25%, the highest level in the last 14 years.
The inflation rate in the United States is falling, although it remains very high at 8.3% in August.
Unemployment remains very low despite last monthbroke the losing streak in the US, increasing the rate by two-tenths, up to 3.7%.