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Trump says US GDP is ‘going to go a lot higher’ after strong report

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President Donald Trump said Friday that the next GDP
report will “do extraordinarily well.”

Andrew Harnik/AP

  • At a news conference Friday, President Donald Trump
    said he expected the US economy to grow even faster in the
    second half the year. 
  • A report released earlier showed that in the second
    quarter, gross domestic product (GDP) rose at
    a 4.1% annual rate,
    the fastest since 2014
  • “These numbers are very, very sustainable,” Trump said,
    countering the opinion of many economists that growth at this
    pace will not last. 

President Donald Trump said Friday that the US economy is likely
to accelerate even faster later this year, following a report
that showed the strongest growth in nearly four years. 

The Commerce Department had earlier reported that
gross domestic product
 (GDP), the total value of goods
and services produced in the US, increased at an annual pace of
4.1%, the highest since 2014. 

“As trade deals come in one by one, we’re going to go a lot
higher than these numbers — and these are great numbers,” Trump
said at a news conference after the report.

He added, “I happen to think we’re going to do
extraordinarily well in our next report.”

Trump said growth during each of the two previous
administrations, a period that coincided with the 2008 recession,
averaged just over 1.8%.

“By contrast, we are now on track to hit an average GDP
annual growth of over 3% and it could be substantially over 3%,”
Trump said. “

Each point, by the way, means
approximately $3 trillion and 10 million jobs. Think of
that.”

Friday’s report showed that the US became a $20 trillion
economy — the first time any country has hit that
milestone.  

Trump cast doubt on the chorus of economists who have said
that growth at a 3%+ rate is not sustainable. Worker productivity
has slowed in recent years, and growth in Q2 was partly boosted
by a surge in soybean exports ahead of China’s retaliatory 25%
tariff on the crop. 

“I think the most important thing — and Larry Kudlow just
confirmed to me along with Kevin Hassett — is that these numbers
are very, very sustainable,” Trump said. “This isn’t a one-time
shot.”

A rebound in consumer spending from the first quarter
served the biggest contribution to growth in Q2. The April-June
period was the first full quarter after the Trump
administration’s tax cuts were signed into law.

Personal consumption increased by 4% in the first full
quarter after President Donald Trump signed tax cuts into law.
Business investment and government spending also
increased.

The Commerce Department’s report was based on preliminary
data, and revisions with more complete data will be released in
August and September. 

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