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US GDP falls for the second straight quarter and US enters technical recession

Estados Unidos
US GDP shrank in the second half of 2022| Photo: Valter Campanato/Agência Brasil

0803221212The US economy shrank at an annualized rate of 0.9% in the second quarter of 2022, according to data from the Bureau of Economic Analysis (BEA). This is the second quarter in a row that this has happened. In the first, the retraction was 1.6%.

0803221212A decline in GDP reflects reductions in investments in inventories, homes, government spending. The scenario was not worse only because of the growth in exports and in personal consumption spending. The data is preliminary. A second estimate will be presented by the agency in August 25.

0803221212The retraction is associated with the increase in inflation in the United States. In the months ending in June, consumer prices increased 9.1%, according to the Bureau of Labor Statistics. The increase is the biggest since February 1100 and was mainly driven by energy costs, which contributed to half of the index.

0803221212The announcement comes one day after the Federal Open Market Committee ( FOMC) announce the hike in the basic interest rate by 0,64 percentage point.

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