The US economy has faced a setback in the first quarter of 2024, with GDP growth coming in at only 1.6%, much lower than the predicted 2.4%. This may pose challenges for President Joe Biden’s re-election campaign against former President Donald Trump in November. Despite this, the US remains ahead of other major industrialized economies with an expected growth rate of 2.7% for the year, according to the International Monetary Fund (IMF). This is higher than many G7 countries, including Germany’s growth outlook of just 0.3%.
However, it’s worth noting that currencies in the G20 group of major economies have depreciated against the US dollar this year, despite a decrease in exports contributing to the slowdown in growth. While this may have played a role in the decline in GDP growth, it’s important to recognize that the overall economic outlook for the country remains relatively strong compared to other industrialized states. Consumer spending and state, federal, and local spending have also contributed to this slowdown.