Published: Mon, July 30, 2018
Global Media | By Derrick Guzman

Trump claims victory as GDP grows at fastest pace since 2014

Trump claims victory as GDP grows at fastest pace since 2014

The result has been multiple positive trends since Trump began implementing that agenda.

But many analysts cautioned that growth could cool in coming months. That means some exports simply happened in the second quarter instead of the third, which means third-quarter exports will probably be lower.

Friday's report showed the economy boomed in the second quarter of 2018, although many economists and policymakers believe the pace is unlikely to be sustained in the long run, given the ageing of the population and slow productivity growth of recent years. He just says, well, I'm going to negotiate a better deal. The GDP broadly reflects the goods and services produced in the country.

President Trump got the big number he was looking for this week, when the government announced the economy grew by 4.1% in the second quarter. The dollar and yields on 10-year Treasuries declined after the report, which also showed inflation excluding food and energy was lower than estimated.

TRUMP: "We've accomplished an economic turnaround of historic proportions." - remarks Friday at the White House.

Everybody wins when we grow the economy - Democrats and Republicans alike. First, consumer spending rose 4 percent.

Compared with the second quarter of 2017, the economy grew by 2.8% in the April-June period.

"This isn't a one time shot", he said on Friday.

The economy will this year be supported by a $1.5 trillion tax cut package and increased government spending in the last quarter.

An economic slowdown could be ahead for the United States, not robust growth.

The numbers were driven by consumers who began spending the tax cuts Trump signed into law a year ago and exporters who have been rushing to get their products delivered ahead of retaliatory tariffs.

January-March quarter GDP growth was revised up to a 2.2 percent pace from the previously reported 2.0 percent rate to account for updated information and methodology improvements.

There were some signs of softness, however. But most economists forecast it will fall back below 3 per cent soon afterward.

That weakness is a potential red flag, said Lindsey Piegza, chief economist at Stifel. Note, too, that the trade war with the European Union is on hold and that the future for soybean exports now seems rosy (elsewhere, the Post, borrowing from Nancy "Crumbs" Pelosi's play book, writes off this good news as "beans"). While Obama never achieved the 3 percent annual growth that Trump hopes to see, he came close. Personal consumption increased by 4% in the first full quarter after President Donald Trump's new tax law went into effect. These accelerated purchases mean faster growth now at the expense of slower growth later. We have to give the president credit here.

The president portrays an economy breaking free of its shackles as his administration cuts red tape and lowers taxes. Perversely, so did the threat of various trade rows. The Commerce Department said earlier this month that soybean exports surged as buyers stockpiled ahead of China's imposition of 25% tariffs.

There are worries that America's numerous trade spats are now hitting economic growth. His two-term average of 1.6 percent annual growth is the worst among post-World War II presidents. We were just talking about, you know, soybean sales.

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