The economic growth of the U.S. has seen an increment of 4.2 percent in the second quarter, which shows the best performance in four years. This growth has put up the economy on the track that Donald Trump aimed for.
The economic growth increased to 4.2 percent on an annual rate in the second estimation round of GDP for April-June months, as the Commerce Department announced yesterday.
In July, the expansion in GPD was of 4.1 percent. It was recorded as the fastest rate of expansion since 2014’s third quarter. While the economic growth stood at 2.2 percent in the period of January-March this year.
The first half of 2018 has recorded an overall growth of 3.2 percent, slightly above the estimation of the last month as 3.1 percent in the economy sector.
The growth pace in the second-quarter is unsustainable as it was driven largely by many factors as the economists cautioned. This time, the economy is facing many constraints like low productivity, lesser population growth, etc.
On the other hand, the policy “America First” of the Trump’s administration also poses a threat to the economy as this policy has led to a rise in the trade war with China and tariff deals with countries like Canada and Mexico.
The economists are now predicting that the economy would eventually reduce to 4.0 in the growth rate. “The expansion pace will cool off in the second half”, a lead economist, Oren Klachkin reported.
The U.S. President cheered after the second-quarter data as their administration had taken a vow to boost the economic growth by 3 percent. He is currently admiring the rate of growth that has turned out under his administration. He also tweeted lately after the records came out yesterday, “Our country is doing great!”