For the second consecutive quarter, the US economy shrinked.
The second quarter’s gross domestic product declined 0.9 percent on an annualized basis, 0.2 percent less than the first quarter, according to data released by the commerce department on Thursday. This comes after first-quarter GDP figures revealed a 1.6 percent decline in the US economy in the first three months of 2022.
One definition of a recession includes consecutive quarterly contractions. The US economy is not now in a recession, according to the White House, and Treasury Secretary Janet Yellen. She said earlier this week that she would “be astonished” if the NBER said otherwise.
At a news conference on Thursday, she emphasized that point and stated that the economy “remains resilient.”
“Most economists and most Americans agree that a recession is characterized by significant job losses and mass layoffs, business closures, a significant slowdown in private sector activity, and severe strain on household budgets. In conclusion, our economy has weakened broadly,” she remarked. That is not what we are currently witnessing,
However, two consecutive quarters of negative growth will put additional pressure on President Joe Biden, who already has low support ratings despite frequently highlighting a robust economy as one of his administration’s major accomplishments.
