Second quarter GDP grew at 2.8% rate, much more than expected, as election approches
By
Zachary Halaschak
July 25, 2024 8:32 am
.
The economy grew at a robust 2.8% seasonally adjusted annual rate in the second quarter of this year, the Bureau of Economic Analysis reported Thursday in a preliminary estimate.
The consensus among economists was that gross domestic product would increase at a 2% rate in the second quarter, so the stronger-than-expected growth is good news for the economy and the Biden administration, which has been buffeted by low economic approval ratings, in an election year.
For context, the economy expanded at a 1.4% rate in the first quarter of this year.
The report will be updated twice in the weeks ahead.
The second quarter’s GDP reading is also an uptick from all of 2023, when the economy expanded a healthy 2.5% for the year.
Any economic data coming out in the next few months will be closely scrutinized, given the proximity to the November elections. The economy is the biggest issue for voters during this election cycle, with Republicans emphasizing voter discontent over inflation and Democrats trying to reframe focus on encouraging economic developments — such as output growth that has been relatively strong for the stage of the business cycle. GDP is a broad measure of overall economic output
Still, GDP growth and strong stable labor market have been overshadowed in voters’ minds by inflation.
Inflation, and soaring interest rates, have made life more unaffordable for many households. While annual inflation, as tracked by the consumer price index, has fallen to 3%, nearly four years of cumulative inflation has taken a toll on voters.
From January 2021, the month President Joe Biden was sworn into office, overall inflation has increased by more than 19%, as measured by the consumer price index.
more
https://www.washingtonexaminer.com/policy/finance-and-economy/3098316/second-quarter-gdp-grew-at-x-rate-much-more-than-expected-as-election-approches/
