The U.S. economy left behind the declines that put it in a technical recession and returned to growth in the third quarter, according to data released Thursday by the Bureau of Economic Analysis (BEA). In that period, the main economy of the planet grew by 0.6%, while the annual rate of growth stood at 2.6%.
In the previous quarters, the United States had registered quarter-on-quarter falls of 0.4% and 0.1%, which is considered a technical recession. The increase in GDP was made possible by an improvement in exports and consumer spending, as well as in nonresidential investment and both federal and state public spending, which partly offset the decrease in residential and other investment.
The administration of President Joe Biden and many economists, however, ruled out that the US had entered a recession, since the strength of the labor market in particular would make that category not applicable in this case. In addition, the rebound is stronger than expected. Analysts had expected GDP growth of 2.3% in the third quarter of the year.
Criticism of the “pessimists”
In a more detailed analysis, the BEA shows that there are many components of the economy that are not yet recovering, such as household consumption at a time marked by high inflation. The statistics explain in this regard that consumer spending improved due to the increase in spending on services, such as health or travel, but the consumption of goods fell.
Through a statement, Biden reproached the “pessimists” who have spent months arguing that the US economy was in recession. “Today we have proof that the economic recovery continues to advance,” said the president, who said that his government’s priority now is to reduce inflation, its “main economic challenge.”
Nevertheless, recession risks persist for the coming months. The US president himself had mentioned earlier this month the possibility of a “very mild recession”.
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