Originally in the 4th quarter of 2024, there was a projected GDP growth of 2.3%. However, projections now indicate a growth at merely 0.3%. This would be a relatively weak amount of growth in the years following COVID. The slowing growth of the country is beginning to worry experts, investors, and citizens alike. As uncertainty of the economy remains steady, it is unclear whether or not Trump's policies will steer America to a negative path.
The growth rate will slowly build back up towards what is currently projected, with forecasts of 1.4% growth in Q2, 1.6% in Q3, and 2% in Q4. Though with projections having decreased as of late, it is unclear as to whether or not these predictions will successfully predict a steady increase in GDP growth. One thing is clear in this time of uncertainty, the administration will want to rethink their strategies if they wish to get themselves out of the hole they’ve put themselves in, and begin to grow at a steady rate once more.
This issue seems to stem mostly from Trumps newly imposed tariffs. While his goal is to strengthen the American economy, he only appears to be hurting it as of now but hopefully things start to trend upward in the near future as our country adapts to the changes.
ReplyDeleteI think it's expected with the tariffs imposed that the economy will slow or cool a little bit, but I think this is a unique situation because we are still seeing higher inflation with a cooling economy at the same time
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