The New York Times reported yesterday that the economy of the United States resembles that of Barack Obama during his last year as the president. The Times noted that after a slow decline for the first quarter of 2017, the US economy seems to be bouncing back on this quarter. This means that the American economy has grown by approximately 1.7 percent. The growth rate for the last quarter of 2017 was 1.5 percent. However, compared to what President Trump regime promised, this is an underscore. They promised the Americans an annual economic growth rate of more than four percent.
An economist from IHS known as Patrick Newport suggested that the current growth rate is more or less the same that has been experienced in the past few years. Compared to other economies of the west, USA seems to be doing better than Germany and the United Kingdom. Apparently, in a slow moving pack, the United States seems to be leading. Experts suggest that the recent success will prompt the Federal Reserve to encourage banks to shrink their balance sheets while at the same time raising the interest’s rate gradually. However, it important to note that it’s not all sectors that are suffering. For instance, while the retail industry continues to struggles, other industries such as banking, healthcare and technology are doing quite well.
At the same time, experts note that the current 4.4 percent unemployment rate happens to be the lowest that the United States has seen in decades. On the other hand, wage growth hasn’t moved, and the gap in fortunes between high school workers and college workers continue to widen. Also, signs of growth are being recorded in other areas such as the housing market and the stock market. This has resulted to the booming of the housing market in coastal areas such as San Francisco, Washington, Boston and New York.
Experts say that the current improvement in the economy can be credited to the steady consumer spending. Also, the performance can also be credited to trade balance improvement. Also, shoppers opting to buy durable goods have contributed to the growth of the US economy. This means that people now prefer durable appliances, automobiles and furniture. The standoff between the Democrats and Republican in Washington is good news for the economy as no big comprehensive tax reform as well big infrastructure program is expected in the coming months. This has helped deal with the cloud of uncertainty that has surrounded the American economy.