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Saturday, January 28, 2023

The United States enters a technical recession with GDP falling 0.2% in the second quarter



The United States entered a technical recession in the second quarter of 2022 when its gross domestic product (GDP) recorded a 0.2% contraction after already contracting 0.4% in the first three months of the year, as per the The first estimate comes from data released this Thursday by the US government’s Office of Economic Analysis (BEA, for its English acronym).

According to the unanimous opinion of economists, a technical recession is the economic situation that occurs when two quarters of the economic contraction are lined up.

The BEA has stated that between April and June there was a decline in private inventory investment, housing investment, government spending and non-residential fixed investment. However, these setbacks were partially offset by increases in exports and consumer spending.

The agency has also explained that the economic slowdown in the second quarter came in the context of “persistent inflation”, low unemployment, rising interest rates and ongoing problems in supply chains.

Because of this decline, United States GDP at the end of the second quarter of 2022 was 2.5% higher than at the end of the fourth quarter of 2019, before the impact of the Covid-19 pandemic. In the first quarter, this figure was 2.7% higher.

On an annualized basis, the Bureau’s preferred way of reporting, US GDP contracted 0.9% in the second quarter of the year, compared with an annualized 1.6% contraction in the first quarter.


Source europapress.es

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