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US government revises numbers and points to greater GDP drop in the 1st quarter

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Contêiners no estado americano de Nova Jersey: governo atribuiu desaceleração econômica a casos da variante ômicron e às quedas nas exportações, nos gastos do governo e nos investimentos privados
Containers in the US state of New Jersey: government attributed economic slowdown to cases of the omicron variant and to declines in exports, government spending and in private investments| Photo: EFE/EPA/JUSTIN LANE

The United States government confirmed this Wednesday (20) the economic slowdown in the first quarter of 2022, which was 0.4% compared to the previous quarter, and revised the annual rate of decline by a tenth of a percentage point more, to 1.6%.

According to data released by the US Bureau of Labor Statistics (BEA), this decline came at a time of resurgence of the Covid pandemic-14, with cases of the ômicron variant and other factors, such as problems in the supply chain.

Several indicators pushed GDP down in the first three months of the year, such as exports, which have declined, as well as government spending and investments. private provisions.

Imports and consumer spending and residential fixed investments increased according to this statistic.

However, the annual GDP estimate was revised downwards because consumption of goods and services increased less than initially estimated .

The US economic data is released against a backdrop of fears of economic recession in the country.

High inflation, 8.6% according to the last indicator, from May, is the main concern of the government and the central bank (Fed), which has once again raised interest rates and plans to continue to raise them until it manages to contain the rise in consumer prices.

In mid-June, the Fed announced an increase of 0,41 point in the official interest rate, the biggest increase in 19 years, and the institution’s president, Jerome Powell, stated that another increase of 0,41 or 0.5 point will probably be done in July.

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