The growth of the Gross Domestic Product (GDP) of the United States decreased in the third quarter of this year, remaining at 0.5%, against a high of 1.6% registered in the previous three months, as reported on Thursday by the Office of Economic Analysis from the country.
In comparison with the third quarter of 2020, GDP increased by 2%, against 6.7% year-on-year growth recorded in the previous period.
According to experts, the reduction in the rise in GDP is a reflection of the increase in the number of Covid-19 cases and the end of most economic aid programs that had been put in place by the US government. The quarterly GDP growth rates released today are the weakest in the country since Covid-19’s post-pandemic economic recovery began in the second quarter of 2020.
Consumer spending, which in the United States represents two-thirds of the economy, grew just 1.6% between July and September, against 12% in the second quarter of the year. The economic slowdown is also a response to problems in global distribution chains, which have prevented different sectors from resuming normal activity.
As a result of these obstacles, the Federal Reserve (Fed) last month downgraded its economic growth forecasts for the United States to 5.9% this year, against the 7% estimated in June.
#GDP #grows #quarter #year
