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The US economic growth rate in the first quarter of this year was negative 1.4%.
This is an unexpected negative growth that is far below market expectations, but President Biden said he was not concerned about a recession and did not seem to give much importance to it.
Correspondent Kim Jong-won from New York.
<Reporter>
The US GDP growth rate in the first quarter was negative 1.4%, an unexpected negative growth that overturned the market's forecast that it would grow around 1%.
[CNBC News: Q1 GDP woefully recorded minus 1.4%.
Negative 1.4%!]
The U.S. economy experienced negative growth in the first and second quarters of 2020 when the corona crisis began, and after that, it grew for six consecutive quarters and then returned to negative growth after a year and a half.
It is analyzed that inflation worsened sharply as the war in Ukraine overlapped in the aftermath of the corona crisis, and the US trade deficit, which recorded an all-time high, also overlapped.
[Janet Yellen / U.S. Treasury Secretary: Recently, the economy was shocked as the Russian invasion of Ukraine was added to the global corona crisis.
This is a problem that must be resolved.]
While there are concerns about stagflation, in which prices are rising and the economy is stagnating, President Biden has said there is nothing to worry about.
Enlarging an image
[Joe Biden/President of the United States: I am not concerned about a recession.
Because it is now showing that all sectors that have been affected by the corona crisis are growing tremendously across the country.]
In fact, Wall Street is premature to predict a recession based only on the results of this survey.
The soundness of the U.S. economy was confirmed as personal consumption expenditure increased by 0.7% despite inflation.
Today (29th), the New York Stock Exchange closed the market with all three major indices rising as big tech companies such as Facebook and Twitter performed well despite the negative growth rate announcement.