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America goes into ‘recession’ after second straight quarter of negative growth

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 America goes into recession after second straight quarter of negative growth

 

President Joe Biden of United States is facing fierce criticism for refusing to acknowledge that America has entered a recession, after the US economy met the classic definition of a downturn by contracting for the second straight quarter.

The Commerce Department confirmed in a report on Thursday that US gross domestic product shrank 0.9 percent in the second quarter, following a decline of 1.6 percent decline in the first quarter.

However, Biden responded in a statement that did not mention the possibility of a recession, instead saying that ‘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,’ he added, citing strong consumer spending and a low unemployment rate as signs that the US economy remains robust.

As recently as Monday, asked about the possibility of a negative GDP report, Biden told reporters: ‘We’re not going to be in a recession.’

Though two quarters of shrinking GDP is the classic and informal definition of a recession, White House has denied that the US meets the criteria for a recession, saying a panel of economists must officially declare that the economy is no longer expanding.

Republican critics accused the administration of flying in the face of reality, with House Minority Leader Kevin McCarthy saying in a floor speech: ‘You would rather redefine a recession than restore a healthy economy.’

US gross domestic product shrank 0.9 percent in the second quarter, following a decline of 1.6 percent decline in the first quarter. Two consecutive quarters of shrinking GDP is the classic definition of a recession.

Republican critics accused the Biden administration of flying in the face of reality, with House Minority Leader Kevin McCarthy saying in a floor speech: ‘You would rather redefine a recession than restore a healthy economy’.

(DAILY MAIL)

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