The US economy has shrunk for two consecutive quarters, meeting one of the criteria for a recession, official figures released on Thursday suggest.

Real gross domestic product (GDP) decreased at an annual rate of 0.9% in the second quarter of 2022, following a decline of 1.6% in the first quarter, according to a release published on the US government’s website.

https://www.usnews.com/dims4/USNEWS/131fd73/2147483647/thumbnail/970x647/quality/85/?url=http:%2F%2Fmedia.beam.usnews.com%2F2e%2Febdfc96d5f4e3b9460f4254a16ae90%2Ftag:reuters.com%2C2022:newsml_LYNXMPEI6P0NP:12022-07-26T144507Z_1_LYNXMPEI6P0NP_RTROPTP_3_USA-ECONOMY-HOUSING.JPG

It notes that the data for the second quarter represents an advance estimate, and more complete data will be released in August 2022. The drop in GDP reflects decreases in government spending, retail trade, and other sectors, the release states.

A recession is a prolonged downturn in economic activity, most often defined as two consecutive quarters of decline in a country’s GDP. It usually produces declines in economic output, consumer demand, and leads to unemployment.

It’s no surprise that the economy is slowing down as the Federal Reserve acts to bring down inflation, US President Joe Biden said on Thursday, commenting on the figures.

https://i0.wp.com/eprimefeed.com/wp-content/uploads/2022/07/US-enters-technical-recession-after-two-quarter-drop-in-GDP-696x392.jpg?resize=696%2C392&ssl=1

This comes after the US Federal Reserve delivered another 75 basis-point interest-rate hike on Wednesday and suggested more may be necessary in the coming months.

We’re not trying to have a recession – and we don’t think we have to, said chair of the Federal Reserve Jerome Powell.

Inflation in the USA rose to 9.1% last month, the fastest rate since 1981, driven mainly by higher prices for fuel and food, orchestrated by unilateral global sanctions on Russia.

RT. com / ABC Flash Point WW III News 2022.

4.5 2 votes
Article Rating
Subscribe
Notify of
guest

11 Comments
Inline Feedbacks
View all comments
Lloyd Cross
Lloyd Cross
Guest
29-07-22 03:07

GDP, will keep decreasing as sanctions by the USA on the World Increase.

CatChi
CatChi
Guest
Reply to  Lloyd Cross
29-07-22 10:49

comment image

Valkry
Valkry
Guest
Reply to  CatChi
12-08-22 12:11

comment image

Linguist
Linguist
Guest
29-07-22 03:08

The decline will be generational!

CatChi
CatChi
Guest
Reply to  Linguist
29-07-22 10:49

comment image

CatChi
CatChi
Guest
29-07-22 03:09

US has been in perpetual recession for decades now and without the endless money printing, blackmailing-threatening-coercing-looting other countries, its economy would have collapsed unto a heap long time ago … the US regime cares not about recession or anything except as a factor for winning election – also the US regime creeps care only about their own and their sponsors’ interest and don’t care about managing the economy, well-being or anything of the American people …

Donnchadh
Donnchadh
Guest
Reply to  CatChi
29-07-22 06:33

You got that spot on plenty of US economists predicted a return of 2008 due to the banks and financial institutions refusing to change their ways .
“Red hot ” money printing presses causing inflation that effects the poor -lower middle class downwards heavily but –as you say– they dont care a plugged nickel for anybody .
US infrastructure in dire need of repair but Billions of $$$$$$ of taxpayers money given to Israel and Ukraine -guess you know who runs the USA ?

Last edited 17 days ago by Donnchadh
Bon Aventura
Guest
Reply to  Donnchadh
29-07-22 10:50

comment image?cache=hp6Doeh1qz&ops=1778_1000

CatChi
CatChi
Guest
Reply to  CatChi
29-07-22 10:49

comment image?resize=1024%2C540&ssl=1