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US Economy 2.9 percent increase in 2018, just below Trump's target: NPR


The US economy grew by 2.9 percent last year, only in the absence of Trump's 3 percent target.

LM Otero / AP


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LM Otero / AP

The US economy grew by 2.9 percent last year, only in the absence of Trump's 3 percent target.

LM Otero / AP

The US economy showed strong growth of 2.6 percent in the last three months of 2018, but growth was significantly lower than government earlier this year.

For the whole of 2018, growth was 2.9%, below the 3% target for the Trump administration.

"The economy has gone beyond the mountainside and lost its height in the last quarter of 2018, but it will not collapse.

In the fourth quarter, delays delayed by one month due to government closures were higher than forecasts by many economists. These were reinforced by a significant increase in business investment expenditure, which rose by 6.2 percent annually.

According to Trump Administration officials, larger numbers than expected are the success of the President's economic agenda.

"President Donald Trump unleashed US growth in one step, experts say it was not possible, approaching 3% real GDP growth in 2018," said Trade Minister Wilbur Ross. "America's first agenda, which prioritises American jobs, US workers, and the American industry, rather than pregnant and unfair trade agreements, has revived the US economy. America is back."

Economists were somewhat more restrained in the reaction.

"The US economy was not so bad in the last months of last year. In fact, it seemed very good overall," says Mark Hamrick, chief economic analyst at Bankrate.com.

However, the figures show a clear softening of growth during the year.

In the second quarter, the economy grew by a very strong 4.2 percent, which many economists attributed to the 2017 tax cut.

However, after the initial peak, growth decelerated to 3.4 percent in the third quarter, before declining further at the end of the year.

Many economists see that in 2019, due to the weaknesses in European weakness and tax cuts, growth will continue to slow down. The Federal Reserve is currently expecting a 2.3 percent increase.

Slowing growth suggests that Fed officials can continue to patience in deciding whether to raise interest rates.

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