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Monday, August 15, 2022
HomeNewsEconomyU.S. Economic Growth Fizzles in 4Q; GDP Falls to 1.9%

U.S. Economic Growth Fizzles in 4Q; GDP Falls to 1.9%

Gross-Domestic-Product-GDP-Reuters

The first reading of fourth-quarter (4Q) gross domestic product (GDP) showed the U.S. economy grew at a slower annualized pace of 1.9%. The Commerce Department said Friday the he final reading on third-quarter growth was 3.5%, but fell in President Barack Obama’s final 4Q.

Economists were expecting economic growth to come in at a 2.2% pace.

Overall, the economy grew only 1.6% throughout 2016, which was the weakest pace since 2011. The U.S. economy only grew 2.6% in 2015.

An downward revision to inventory also sliced off of GDP growth last year, while exports fell 4.3% rate and erased the 10% gain seen in the third quarter.

GDP growth in the first two quarters was also negated by cheaper oil and a strong dollar, which hurt company profits and stifled business investment.

Widening trade deficits sliced off 1.7% from GDP growth in the 4Q after adding 0.85% in the 3Q. That was the biggest net-negative from trade since the second quarter of 2010.

Written by
Staff Writing Group

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

Latest comments

  • Pathetic.

    • Isn’t it? But unemployment is so low and poverty has fallen and, and, and blah blah blah. Total nonsense. The goods news is that it’s all about to change now.

    • Richard Baris indeed!!

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