US GDP Slowed, Biden says American dream and economy strong
President Joe Biden lauded the latest gross domestic product (GDP) report on Thursday, asserting in a statement that the data demonstrates the continued strength of the American economy as it shifts toward stable and consistent growth.
The Bureau of Economic Analysis released data on Thursday morning that revealed a 1.1% growth rate for the US economy in the first quarter of 2023. However, this figure fell short of expectations and was lower than the 2.6% growth rate recorded in the fourth quarter of 2022.
Despite the lower-than-anticipated growth rate, the data indicated a level of economic resilience. This resilience was evident even as the Federal Reserve implemented multiple interest rate hikes to address inflation, and consumer spending increased at an annual rate of 3.7%.
Biden highlighted that real personal disposable income had risen and that American consumers continued to spend, albeit at a slower pace of growth. He also noted that the economy added over 300,000 jobs per month during the quarter, the unemployment rate remained close to a 50-year low, and workforce participation for working-age Americans reached its highest level in 15 years.
Furthermore, Biden emphasized that his "Investing in America" agenda aims to rebuild the economy from the middle out and the bottom up, moving away from past trickle-down economic policies. He stated that investments in manufacturing and supply chains are creating well-paying domestic jobs, reducing energy and internet costs, and ensuring that no community is left behind. He credited these policies with helping create a record 12.5 million jobs over the past two years, including nearly 800,000 manufacturing jobs.
However, the economy and inflation continue to be significant domestic challenges for Biden as he prepares for his 2024 reelection campaign. Inflation remains a top concern for voters, and many experts predict that the economy may experience further contraction throughout the remainder of 2023.