US economy on the rise: GDP growth exceeded forecasts

Фото: Depositphotos

The growth of the US economy during the first three months of this year was not impressive, but new data shows that this is not as bad as it initially seemed.

The Commerce Department reported Friday that in the first quarter, GDP grew at an annualized rate of 0,8%. The figure was 0,3% higher than forecasts of government economists at the beginning of this year, but still reflects a slowdown in economic growth.

Experts regularly monitor growth forecasts as new data becomes available.

The upwardly revised GDP level reflects a stronger housing market, as well as greater efforts by enterprises to create inventories.

The US economy has suffered because of a strong dollar, which means a higher cost of American-made products on world markets. Weak demand abroad is also not conducive to exports, slowing economic growth in the United States.

In the near future, experts will also monitor the meeting of the heads of the US Federal Reserve, scheduled for June 15, which will consider the possibility of raising the discount rate.

Interest rates remain unusually low after they were lowered during the financial crisis in order to stimulate economic growth.

Uneven and scattered economic recovery forces experts to discuss how soon the rates will increase and how much. If you raise them too soon, the economy may slip back into recession and begin to shrink. If you wait too long, the risk that inflation can hurt the economy increases.

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