United States: a risk of recession hangs over the American economy which continues to slow down
A risk of recession hangs over the United States, whose economy continues to slow down.
Illustrative image.
© REUTERS - Lee Jae Won
Text by: RFI Follow
1 min
Weighed down by inflation, the American economy continues to slow down.
The gross domestic product of the United States fell again in the second quarter, according to figures published this Thursday, July 28 by the Department of Commerce.
The risk of recession hovers more than ever over the world's largest economy, even if the administration of Joe Biden says the opposite.
Advertising
Read more
Has the US economy just entered a recession?
This is the burning question after this new decline in GDP.
It contracted by 0.9% at an annualized rate in the second quarter, after having already fallen by 1.6% in the first quarter.
►Also read: The American FED's balancing act between inflation and recession
This slowdown is partly explained by declines in business investment and household purchases of housing.
The government and the States have also curbed their spending.
Such a situation is usually sufficient to speak of a recession.
But the Biden administration does not want to base itself solely on these criteria and argues that certain indicators are green.
This is the case for consumption or employment with falling unemployment claims.
In reality, only the National Bureau of Economic Research can determine whether the country has officially entered a recession.
He has not spoken yet.
The IMF had lowered its growth forecast for the United States for 2022, and now only expects 2.3%.
One thing is certain, this slowdown in the economy is a blow for Joe Biden, just months before the midterm elections.
►Also read: United States: inflation up 8.6% over one year, a new record
Newsletter
Receive all the international news directly in your mailbox
I subscribe
Follow all the international news by downloading the RFI application
google-play-badge_EN
United States
Economy
IMF
Joe Biden