Photo by Gage Skidmore/Flickr
The speech of Donald Trump, the President of the United States of America, at Davos may have sung praises regarding the economy of the United States. However, as he spoke, official figures suggested that growth in the US economy was weaker than what was expected.
Figures from the Bureau of Economic Analysis (BEA) revealed that growth reached 2.6 percent in the fourth quarter of 2017, which is below the expectations of economists of three percent.
The number was down from the 3.2 percent growth during the previous quarter, even though it was higher compared to the 1.8 percent growth during the same period the previous year.
The BEA said that the growth reflected the positive contributions from exports, local government spending, and consumer spending.
The BEA added that the findings mean that the real GDP increased by 2.3 percent last year, up from the 1.5 percent in 2016.
The release of the results coincided with the speech of Donald Trump at Davos, in which he said that there had “never been a better time to hire, to invest, to build in the United States.”
Some economists suggested that even though the growth were not able to reach expectations, it was still strong.
The managing director at UFX.com, Dennis De Jong, stated: “Trump will be disappointed today after the fourth-quarter GDP figures showed his initial targets have fallen short of the mark, but the US is still on a sound financial footing.
“The Trump administration had targeted three percent growth but despite the latest figures falling below expectations, the President still has reasons to be bullish.”
“Although the markets remain resilient, Trump’s “America First” message that he is asserting in Davos could push potential trading partners away. With global politics still on a knife-edge, there’s still the potential for the slightest trigger to see traders reach for the panic button.”
The US dollar remained weak after the number, dropping by 0.6 percent against sterling to £0.7030, and falling by 0.2 percent against the euro, to €0.8049.