Economic Growth Hits Trump’s 3 Percent Target

The U.S. economy grew at a higher rate than expected reflecting upturns in consumer spending and business investment.

In the second quarter of 2017, gross domestic product (GDP) rose at an annual rate of 3 percent. This was the fastest pace in more than two years.

According to the revised estimates released by the Commerce Department on Aug. 30, the growth rate is better than the initial forecast of 2.6 percent announced a month earlier. And it is a substantial jump compared to the modest increase of 1.2 percent in the first quarter.

“I happen to be one that thinks we can go much higher than 3 percent. There’s no reason why we shouldn’t,” said Trump on Aug. 30 during his speech on tax reform in Springfield, Mo.

Energy production, regulatory relief, and the pro-business policies of the Trump administration are driving the economic growth, according to Stephen Moore, an economist at the Heritage Foundation and former economic advisor to Trump’s 2016 presidential campaign.

He criticized the economists who called Trump’s growth target unrealistic.

“The America-doubters and the never-Trumpers appear to be dead wrong,” he wrote in The Hill.

Consumer spending, which accounts for almost 70 percent of U.S. economic output, increased at a 3.3 percent annual rate in the last quarter. And business investment was higher than initially projected with a nearly 7 percent rise in the second quarter.

After years of underinvestment in computers, factories, technology, and equipment, business spending has grown sharply since Trump’s election, Moore wrote.

“These 3 percent-plus growth rates are especially impressive given that the economy crawled forward at just 1.6 percent growth in President Obama’s last year in office.”

The U.S. economy is expected to grow at a rate of 3.3 percent in the third quarter, according to the Atlanta Federal Reserve’s GDPNow estimate.

“If we achieve sustained 3 percent growth, that means 12 million new jobs and $10 trillion of new economic activity over the next decade,” Trump said.

From The Epoch Times

 
 
 
RECOMMENDED ARTICLE

China Takes Back Its Panda, in Secret Soft Power Plot

China Takes Back Its Panda, in Secret Soft Power Plot
READ MORE >
 
 

President Trump Announces New Sanctions on North Korea

President Trump Announces New Sanctions on North Korea
President Donald Trump said he has signed an executive order imposing sanctions on the North Korean regime. Under the ...
READ MORE >
 
US

Obama’s UN Ambassador May Have Spied On Trump Team

Obama’s UN Ambassador May Have Spied On Trump Team
Samantha Power, former U.S. ambassador to the United Nations in the Obama administration, made over 260 requests to ...
READ MORE >
 

UN Blocks Largest Independent Chinese News Network in US from Covering General Assembly

UN Blocks Largest Independent Chinese News Network in US from Covering General Assembly
The largest Chinese news network operating in the United States—and the only global media company producing Chinese-language content independent ...
READ MORE >
 

Evidence Emerging That New Sanctions on North Korea are Working

Evidence Emerging That New Sanctions on North Korea are Working
Secretary of State Rex Tillerson on Wednesday said that there are indications that sanctions imposed on North Korea ...
READ MORE >
 

‘Urgent Action’ Needed for 60-Year-Old Woman Trapped in Prison

‘Urgent Action’ Needed for 60-Year-Old Woman Trapped in Prison
Human rights organization Amnesty International has issued an "urgent action update" for a Falun Gong practitioner who is ...
READ MORE >