The USA economy grew at the weakest pace of Trump’s presidency in 2019
30 January 2020 : Growth in the United States has slowed more than Donald Trump predicted in 2019 as institutions cut their investment due to the U.S. President’s trade war on China.
The GDP growth of the world’s first economy slowed by 2.3 percent annually, compared to 2.9 percent in 2018, according to preliminary estimates from the Department of Commerce published Thursday.
Growth remains solid compared to major European countries, but it is 3% below Trump’s expectations.
In addition to the decline in institutional investments (+ 2.1% vs. + 6.4%), the Boeing 737 MAX plane, a major contributor to foreign trade, contributed to the impact on US exports that did not change after recording a rise in 2018 by 3%.
In March 2019, the world’s flight safety authorities decided to discontinue use of this new aircraft after two accidents caused the deaths of 346 passengers.
Boeing was forced to stop delivering this model of the aircraft. Since January this aircraft has been suspended for an indefinite period, which could affect growth in the first quarter of 2020.
The good news is that household spending that contributes to growth and represents 70% of US GDP, has not changed (+ 2.6%) in 2019 despite its decline compared to 2018 (+ 3%).
The same trend applies to government expenditures, which increased by 2.3% compared to 3.5% in 2018.