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July 28, 2022
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US economy shrinks 0.2%

Cliente con una tarjeta de crédito en el surtidor de gasolina de pago en el surtidor en Rolling Meadow, Illinois, el jueves 30 de junio de 2022. Foto: Nam Y. Huh/Ap.

The economy of USA it contracted by 0.2% in the second quarter of the year and thus chains two quarters of falls in the Gross Domestic Product (GDP) as a result of the global crisis derived from the war in Ukraine and runaway inflation.

The data published by the Bureau of Labor Statistics (BEA) confirms a second consecutive decline in GDP, which is traditionally considered a technical recession according to the Spanish agency Ephwhose report warns that the diagnosis is not shared by the US government, which does not believe that the country is in a recession scenario given the robustness of its economy.

The data for the second quarter of 2022, the first of the three estimates made by the US Executive, comes after the economy contracted 0.4% in the first quarter. According to the report published this Thursday by the BEA, which calculates an annual rate of decline of 0.9%, the factors of the decline are high inflation, problems in the supply chain and the increase in interest rates.

There were also decreases in private investment, in real estate (residential and non-residential), in spending by the federal, state and local governments, which were partially offset by increases in exports and consumer spending. Imports, for their part, increased. Unemployment also decreased.

From the Executive of Joe Biden and from institutions such as the International Monetary Fund (IMF) or the Federal Reserve they have been preparing the ground for days before the expected bad data and insisting that there are enough economic indicators not to consider that the United States is entering a recession, point to the source.

The data was released just one day after the United States Federal Reserve (Fed) raised the official interest rate by 0.75 points for the second consecutive month and did not rule out another “unusually high” increase in September, if inflation continues to rise. . In June, the inflation rate in the world’s largest economy stood at 9.1%, something not seen since 1981.

USA: inflation reaches 9.1% in June and sets a record in 40 years

Last Tuesday, the International Monetary Fund (IMF) published its forecasts and calculated that the US economy will grow 2.3% this year and 1% next year, estimates that reduce those of April by 1.4 and 1.3 points, respectively.

The institution assured that, although it does not foresee that the US economy will enter a recession this year or in 2023, a “small shock could be enough” to take it to that scenario.

With information from Efe and Ap.

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