The growth rate exceeded 2016 forecasts but has not yet reached the 3 percent promised by Trump.
A new White House report shows that the American economy is growing faster than expected, although the 3 percent growth promised by President Trump to voters has not yet been achieved.
According to an annual report published on Thursday, additional jobs have been added in the United States and the unemployment rate has fallen, while GDP is growing faster than the congressional Budget office predicted in August 2016. The report is intended to serve as another rebuttal to claims that Trump simply inherited a healthy economy from the Obama administration since growth has been recorded since mid-2009.
“The report shows that during the three years of the Trump administration, the American economy continues to outperform forecasts made before the 2016 election,” said Thomas Philipson, acting head of the White House Economic Council.
The increase in the number of jobs and unemployment are moving in similar trajectories since then, Trump has succeeded Obama. On Monday, the former President tweeted that the $ 800 billion economic stimulus package he signed 11 years ago “paved the way for economic growth lasting more than a decade and the longest period of job growth in US history.”
The economy experienced a jump in 2018 after the tax cuts passed by trump in the first year of the presidency. Trump promised that with about $ 1.5 trillion in tax cuts, economic growth would exceed the 3 percent mark over 10 years, “if not 4.5 or even 6.” The maximum rate recorded in 2018 was 2.9 percent. The same was the rate of growth of the American economy in 2015 before Trump became President.
Growth is indeed ahead of the 2016 forecast, but it did not take into account tax cuts. In addition, the budget deficit was 42 percent or $ 301 billion higher than the Budget Office had forecast. The interest rate on 10-year Treasury bonds was also twice as low as the office had predicted. This means that loans to the state and consumers are now cheaper than economists expected.
The White House report also claims that the administration has managed to correct negative trends such as the level of dependence on opioid drugs and the number of overdose deaths.
The report’s authors also note a decrease in economic inequality: now 1.6 percent of the national wealth is in the hands of 50 percent of the poorest population, which is higher than the same figure during the Obama presidency. However, the richest 1% of Americans account for 32.2 percent-slightly more than before Trump took office.