US Treasury Secretary Scott Bessent forecasts a robust 3% real GDP growth for the US this year, exceeding the International Monetary Fund (IMF)'s 2% prediction from its October Global Economic Outlook report. Bessent shared his optimistic outlook during a CBS interview on 7/12, stating, "The economy is performing much better than we think. GDP has increased 4% in recent quarters. Despite temporary closures, the US will close this year with 3% real growth."
Following a 0,6% decline in US GDP during the first quarter of this year, the economy rebounded significantly, growing by 3,8%. Preliminary estimates from the Bureau of Economic Analysis (BEA) for third quarter GDP are set to be released on 23/12. Latest data from the Atlanta Federal Reserve suggests last quarter's growth could reach 3,5%.
Bessent also asserted that the US is entering a "very strong" year-end holiday shopping season, despite some major toy companies raising prices due to import taxes and inflation.
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US Treasury Secretary Scott Bessent in Washington on 14/10. *Photo: AP* |
Consumer spending, a vital sector accounting for nearly 70% of US GDP, remains sluggish. The University of Michigan's consumer confidence survey reported an index of 53,3 points in December, marking a 4,5% increase from last month yet a 28% decrease year-over-year.
US inflation rose by 2% in September. While rising prices continue to affect consumers, US President Donald Trump dismissed claims of financial hardship among the populace. During a cabinet meeting early last week, he declared, "The concept of 'affordability' is just a trick by the Democratic Party."
A recent NBC News survey revealed that around 70% of voters are dissatisfied with Trump's economic leadership, stating his administration has not adequately addressed economic issues and the cost of living.
Bessent, however, affirmed efforts to curb inflation, which he stated has persisted since former President Joe Biden's tenure. He concluded, "Americans don't know how good things are. Democrats created scarcity, contributing to current affordability issues. I anticipate prosperity next year."
Ha Thu (according to Reuters, CNBC)
