The gross domestic product (GDP) of the United States contracted again in the second quarter, by 0.9% at an annualized rate, which increases the risks that the world’s largest economy falls into recession.
In the first quarter, GDP shrank 1.6%, according to figures released Thursday by the Commerce Department.
The commonly accepted definition of a recession is two consecutive quarters of GDP decline, but many economists, as well as the Biden administration, argue that the economy is not necessarily in a recession, however, due to other more favorable indicators, such as employment. . .
Joe Biden’s Secretary of the Treasury – title corresponding to the Minister of Economy and Finance -, Janet Yellen, will give a press conference at 1:30 p.m. (5:30 p.m. GMT).
The Commerce Department said the decline in GDP reflects declining business investment and home purchases by households. Federal, state and local governments have also cut spending.
Consumption remained firm thanks to spending on services, which, however, saw their prices increase with inflation.
The fall in GDP in the quarter is 0.2% if we simply compare it with the previous quarter, the same as other advanced economies.
Source: BFM TV
