Tuesday, January 18

US: economy grows more than expected in the third quarter

The US economy grew at an annual rate of 2.3% in the third quarter for the year, slightly better than initially estimated, the Commerce Department reported Wednesday.

But nevertheless, there are some doubts about the prospects of a rapid rebound due to the emergence of contagious omicron variant of the coronavirus.

The gross domestic product (GDP) of the United States (the total production of all goods and services originating in the country) In the July-September period, it was higher than the estimate made last month of 2.1%.

The good performance was mainly due to consumer spending higher than expected and a greater increase in inventories by businesses.

The trend comes after skyrocketing growth earlier this year, when the US economy began to recover from the pandemic. Growth was 6.3% in the first quarter and 6.7% in the secondBut the rally cooled off in the summer as the delta variant of the coronavirus emerged.

Now what the new omicron variant has emerged, in addition to higher inflation and supply chain disruptions, the future economic outlook looks more uncertain.

Such fears have sparked violent ups and downs in the Stock Market.Although the belief that omicron risks will be manageable prompted a 560-point rally in the Dow Jones industrial average on Tuesday.

However, vSeveral economists believe it is too early to totally dismiss the threats presented by the new variant.

“History repeats itself: the virus Covid is making a comeback and frustrating the economic outlook “said Sung Won Sohn, an economics professor at Loyola Marymount University.

Oxford Economics lowered its economic growth forecast for the current quarter from 7.8% to 7.3%, toAlthough this would still be a considerable increase over the third period figure.

Kathy Bostjancic, an Oxford economist, stated that not only the Covid, but also the reduced chances of the public investment plan being approved President Joe Biden’s have led the firm to lower its economic growth projections.

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