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US Economy Grows At Half Expected Rate As Economy Enters Recession



The United States economy grew at about half the rate as economists had predicted in the first quarter as the country begins to enter a recession, according to a new report from the Bureau of Economic Analysis.

“Real gross domestic product (GDP) increased at an annual rate of 1.1 percent in the first quarter of 2023,” the report said. 

Economists surveyed by Dow Jones had been expecting GDP growth of 2% in the first quarter.

“The increase in real GDP reflected increases in consumer spending, exports, federal government spending, state and local government spending, and nonresidential fixed investment that were partly offset by decreases in private inventory investment and residential fixed investment. Imports, which are a subtraction in the calculation of GDP, increased,” the report added.

In response to the bad economic news, President Biden portrayed the report as evidence that his economic plan is “working.”

“Today’s first quarter 2023 GDP Report shows personal disposable income and consumer spending are up,” Biden wrote on Twitter. “Our economy remains strong as we transition to stable growth.”

“And with 12.5 million new jobs and near record-low unemployment, my economic plan is working,” he added.

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