In the first quarter of 2024, the US economy grew less than expected, according to the Commerce Department. This slowdown is likely to be a significant issue in President Joe Biden’s re-election campaign against his Republican challenger, former President Donald Trump in November. The US only saw a 1.6% GDP growth in the first three months of the year, much lower than the 2.4% predicted by analysts.
Despite this decrease in growth, the US economy remains ahead of other major industrialized economies. The International Monetary Fund (IMF) predicts a 2.7% growth rate for the US for the entire year of 2024, which is an increase from last year. This is significantly higher than the growth rates expected for other G7 countries. For example, Germany’s growth outlook is just 0.3%, despite some mildly improving economic indicators like increasing consumer confidence due to wage hikes.
Consumer spending and exports have declined, as well as state, federal, and local spending which has contributed to the slowdown in growth. However, currencies in the G20 group of major economies have depreciated against the US dollar this year. Although the US growth rate has decreased in part due to a decrease in exports, the overall economic outlook for the country remains relatively strong compared to other industrialized states.