The economy of the United States of America (USA) has recorded two back-to-back negative growth in the year 2022, which can be said to be a recession.
TheNewsGuru.com (TNG) reports that the U.S. economy shrank in the last three months by 0.9%, the second consecutive quarter where the economy has contracted.
In the first quarter of 2022, the gross domestic product (GDP) of the country decreased at an annual rate of 1.6%.
A nonprofit, non-partisan organization called the National Bureau of Economic Research (NBER) determines when the U.S. economy is in a recession.
An NBER committee made up of eight economists makes that determination and many factors go into that calculation.
However, the opposition Republican Party has said, no matter how the White House spins it, it is a recession.
“The White House can spin all it wants but the numbers are clear. We just hit two back-to-back quarters of negative growth putting us in a recession.
“No matter how the White House spins it Joe Biden has let down the American people,” a statement on the party’s official Twitter handle reads.
Reacting to the second quarter GDP report, President Biden said it was not surprising that the economy is slowing down. He expressed optimism about coming out of it stronger and more secure.
“Coming off of last year’s historic economic growth – and regaining all the private sector jobs lost during the pandemic crisis – it’s no surprise that the economy is slowing down as the Federal Reserve acts to bring down inflation.
“But even as we face historic global challenges, we are on the right path and we will come through this transition stronger and more secure,” Biden said.
