The US economy emerges from recession and grows by 0.6% in the third quarter

Economy USA it left behind the dips that sent it into a technical recession and returned to third-quarter growth of 0.6%, according to the Bureau of Economic Analysis (BEA).

The annual growth rate was also 2.6%, according to the first official calculation made by this department of the evolution of gross domestic product.

The world’s first economy registered a quarterly fall of 0.4% and 0.1% in the first two quarters of the year, which is considered a technical recession.

Increase GDP this was made possible by improvements in exports and consumer spending, as well as non-residential investment and federal, state, and local government spending, which partially offset lower housing and other investment.

In a more detailed analysis, the BEA shows that many components of the economy are still not recovering, for example, household consumption during a period of high inflation.

Causes of economic recovery.

Statistics explain in this sense that consumer spending has improved due to increased spending on services such as healthcare or travel, but consumption of goods has fallen.

In the latter case, spending on cars, as well as food and beverages, fell the most.

As for the increase in government spending, this was mainly due to an increase in defense spending in the case of the federal government and an increase in the pay of employees of state and local governments.

The fall in investment in housing was noted primarily in family homes and lower commissions from property sellers.

The decline in investment occurred mainly in trade.

The return to growth came in an environment marked by high inflation and subsequent higher interest rates or supply chain problems, as well as low unemployment and a stronger dollar.

BEA does not undertake to calculate the consequences that these factors, both positive and negative, could have on GDPand remember that this is the first calculation of economic evolution and may change in subsequent calculations.

In any case, positive data reported today, beating economists and markets’ expectations, is giving the Biden-led Administration a breather at a key political juncture, less than two weeks before the midterms.

In his statement, Biden criticized the “prophets” who have been saying for months that the US economy is in recession, and also lashed out at Republicans who “bet on a reversal.”

“Today we have evidence that the economic recovery is underway,” said Biden, who assured his government’s priority now is to bring down inflation, its “chief economic challenge.”

He also insisted on his political message, assuring that while his government is working to contain prices, the Republicans have a “different agenda” for Congress, which includes tax cuts for the rich and large corporations, as well as for households to take on themselves the higher cost of energy or products. such as medicines.

According to most polls, the economic situation and high inflation are the two factors that will matter most when Americans vote.

(As reported by EFE)