America's GDP has not lived up to analysts' expectations so far in 2022. First-quarter data is in showing a 1.4 percent drop instead of the expected 1 percent or more increase.
CNBC: “Q1 GDP goes negative, down 1.4%” pic.twitter.com/Xgr96uuvE1
— The Post Millennial (@TPostMillennial) April 28, 2022
High inflation has eaten up any possibility of economic gains; as consumer expenditures rose some 2.7 percent so far this year, prices have risen 7.8% on average. According to CNBC, "declines in fixed investment, defense spending and the record trade imbalance" also "weighed on growth."
President Biden himself wasn't concerned so much with the numbers, citing low unemployment numbers which have also just came in. He also mentioned "consumer spending and business investment and residential investment" having "increased at significant rates."
Other economists are also considering this to be an anomaly or a statistical "blip on the radar," and expect things to turn around as the year goes on.
"This is noise; not signal. The economy is not falling into recession," opined Ian Shepherdson, Pantheon Macroeconomics's chief economist, in full agreement with Biden's statement.
Other economists and prominent public figures are not as optimistic, however. Elon Musk recently told shareholders in his Tesla company that they should expect inflation to be a problem throughout the rest of the year, at least.
Simona Mocuta, State Street Global Advisors's head economist, also commented in turn that "In retrospect, this could be seen as a pivotal report."
"It reminds us of the reality that growth has been great, but things are changing and they won’t be that great going forward," she continued.
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