Economy – USA: economic growth in 2022 hand in hand with Biden’s warning to the Republicans

First modification: 01/27/2023 – 03:29

Although the forecasts were dire, data from the US Commerce Department reveals that the nation narrowly avoided the possibility of a recession, despite the Federal Reserve’s move to increase interest rates.

The data of 2.9% growth at the annual rate in the last quarter, and 0.7% compared to the last three months, was assumed by President Joe Biden as part of the fact that his economic policies are working in half a year which registered the highest inflation in 40 years and the tightening of monetary policy.

“It came out today, this morning (the report) and I’m not sure the news could have been better. Economic growth has increased, stronger than the experts expected at 2.9% and continues to grow (…) I do not think it is unfair to say that all this is evidence that Biden’s economic plan, thanks to all you guys, it’s really working,” Biden said during his address.

For the year, the US GDP grew by 2.1% but it is far from the 5.9% recorded in 2012.

On the other hand, the representatives of the Republican Party have blamed Biden for causing the increase in inflation by directing federal resources to the economy, for which they have called for spending cuts and other fiscal changes.

On this, the US president pointed out that the changes proposed by the Republicans go against the quality of life of Americans. Likewise, he hopes that in the next few days this bank will be able to approve an increase in the debt ceiling reached by the Government a few days ago and that it warns of the possibility of defaulting.

“They (Republicans) deliberately chose to inflict this kind of pain on the American people. Why? This nation has been through too much, we’ve come too far to allow that to happen. I won’t let it happen,” Biden said.