Sunday, December 5

US GDP slows sharply in the third quarter

The US economy slowed to a modest 2.1% annual rate in the third quarter, slightly better than originally reported. But economists expect a solid rebound in the October-December long as rising inflation and the recent spike in Covid-19 cases don’t derail economic activity.

The increase in Gross Domestic Product —The total production of goods and services in the economy— fis higher than an initial estimate of 2% for the third trimester, but revision remains well below solid earnings of 6.3% in the first quarter of this year and 6.7% in the second.

The weak performance of the US economy in the summer reflected a strong slowdown in consumer spending, as an increase in COVID-19 cases by delta variant made people more cautious when buying and clogged supply chains made items like new cars hard to come by and it also contributed to a rise in inflation to levels not seen in three decades.

Although in recent weeks the cases of Covid-19 have begun to increase again in many parts of the country, economists don’t think the latest increase is enough to curb consumer spending, which represents 70% of economic activity.

The expectation is that the economy in the current quarter, From October to December, it could grow at the strongest rate this year, possibly exceeding 8%.

Voice of America (VOA)

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