GDP in the 3rd quarter rose by 3.5% … Trump boosts strong economic growth (overall)

[아시아경제 뉴욕 김은별 특파원] The US economy grew 3.5% annually in the third quarter (July to September), continuing its growth for the second consecutive quarter. However, it was a little slower than 4% in the previous quarter.

The US Department of Commerce said Thursday that gross domestic product grew 3.5% a year in the third quarter. This was slower than the 4.2% growth rate in the second quarter, but Bloomberg's forecast is 3.3%.

Large foreign companies estimate that the US economy has recorded solid growth. He notably predicted that the economic boom would be confirmed before the mid-term elections on February 6 and would be a favor for President Donald Trump.

As a result of the important tax cuts of the Trump administration, This is the badysis that offsets the decline in business investment and exports due to fears of trade war. Consumer spending, which accounts for more than two-thirds of US economic activity, led to growth of 4%, the highest level in nearly four years. Spending on durable goods such as automobiles rose 6.9%, due to the increase in disposable income due to employment growth and significant tax cuts.

Business investment slowed to stand at 0.8% in the third quarter, compared with 11.5% in the first quarter and 8.7% in the second quarter. Public spending rose 3.3%, as a result of a 4.6% spending on defense spending.

Experts predict that the trade war and high tariffs will slow down economic growth in the future. "While tariffs and the strength of the dollar (due to the trade war with China and other countries) are hitting the economy and tax cuts are weakening, the growth of the US economy will be slowed down, "Bloomberg said. According to many badyzes, growth so far is due to the effect of lower taxes and increased tax expenditures, and soybean exports have rushed to avoid high tariffs before the trade war in large scale.

Although growth slowed slightly in the third quarter, the Fed should continue to raise its key rate as the US economy continues to grow strongly. Fed He raised interest rates from 2.75% to 2.00%, from 1.75% to 2.00%. The Fed expects rate hikes once in December, three times next year and once in 2020.

The GDP released today is a breakthrough and can be revised by a preliminary and final determination.

New York correspondent Kim Eun-see [email protected]