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Positive development in Carat
27. July 2018 at 16:51 TASR
WASHINGTON. The pace of the US economy accelerated sharply in the second quarter.
Positive developments are likely to serve President Donald Trump as an argument for the success of his policy
Most analysts believe that strong growth is temporary and is expected to slow down
gross domestic product (GDP ) Since April in June 2018, the turnover has increased by 4.1% year-on-year, according to the US Department of Commerce. This was the largest since the third quarter of 2014 when the US economy grew by 4.9%.
Growth is however slightly behind the expectations of experts contacted by Bloomberg. percent. The ministry also revised the figure for the first two months to + 2.2% vs. + 2%
Consumer spending in the second quarter jumped 4%, with a growth forecast of only 3%
Positive (+1, 06 percentage points), foreign trade also contributed to the expansion of GDP. The increase in soybean exports before the entry into force of retaliatory rights
is partly at the origin of this phenomenon, but stocks have had a negative impact of 1 point, partially linked to declining soybean stocks, Experts predict rapid expansion, with temporary factors for the rest of the year, growth slowing to around 3%
Trump's tax reform may have encouraged consumer spending and business investment. Trade-related risks and the weakening of the impact of tax cuts are the main reasons why analysts believe that the economy will not keep pace with this growth
Fed forecasts GDP growth of 2.8% in 2018, then 20% by 2.4% and 2% by 2020.
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