The US economy grew at a negative rate for the second quarter in a row, putting the US technically in recession, the US government said.
Although these are preliminary figures that may change, the fact that the economy shrank - it grew by 0.9 percent at a second pace in the quarter that ended in June - shows that the US is entering its first recession in a long time, at a critical moment for Biden - less than six months before the elections for the House of Representatives and a third of the Senate.
As mentioned, the rate of GDP growth was minus 0.9 in the second quarter (April-June), according to the Ministry of Commerce in the Biden administration, a day after the central bank announced another sharp increase in interest rates
In the first quarter, the annual growth rate was minus 1.6 percent, partly because of inflation and the war in Ukraine, which resulted in a reduction in economic activity.
Despite the moral blow, the one who officially defines whether the US is in a recession is the body entrusted with collecting economic indicators, the National Bureau of Economic Research, whose official definition it adheres to is not only based on quarterly growth data but also on "a significant decrease in production, Employment and real income". Therefore, it is still too early to officially determine whether the US is in a recession, among other things in light of the encouraging employment data: about half a million new employees every month in both quarters, and a strong increase in wages.
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