International Online Zhuangao: On the morning of July 28, local time, the preliminary annualized quarterly rate of real gross domestic product (GDP) in the second quarter released by the US Department of Commerce showed that the US GDP fell by 0.9% in the second quarter. Previously, the US GDP fell by 1.6% in the first quarter, and the economy shrank for two consecutive quarters, which met the definition of “technical recession”. Many overseas media have made negative predictions regarding the prospects of the U.S. economy, and American netizens have also expressed their disappointment and dissatisfaction with the current economic situation on social media.
Screenshot of the report on the website of Radio France Internationale
radio france internationalOn July 28, it was reported that the U.S. economy continued to slow down as inflation developed. Data show that the U.S. GDP in the second quarter of 2022 fell by 0.9% on an annualized basis. The report pointed out that the negative growth reflected a decline in business investment, residential fixed-asset investment and government spending.
According to the report, the annualized growth rate of U.S. GDP in the first quarter of 2022 is -1.6%. Technically speaking, the negative growth of GDP for two consecutive quarters is enough to identify a recession in the U.S. economy. According to the report, even if U.S. President Biden refuses to admit a U.S. recession on the grounds that consumer spending continues to grow, the fact is that the risk of a U.S. recession has surpassed ever before. Earlier, the International Monetary Fund (IMF) also lowered its forecast for GDP growth in the United States for the full year of 2022 in its latest report.
Screenshot of the British “Guardian” website report
July 28,British “Guardian” websiteIssued reports expressing concern regarding the outlook for the U.S. economy. The two consecutive quarters of contraction in GDP have unofficially signaled that the U.S. economy has entered a recession.
The report pointed out that the latest US GDP data will deal a major blow to the Biden administration, which is facing a difficult midterm election. The White House has tried to gloss over talk of a recession by emphasizing that some parts of the economy remain strong. Two quarters of negative GDP growth are widely seen as a sign of a recession, and in the U.S. a recession on an official level needs to be declared by a final ruling from the National Bureau of Economic Research (NBER).
According to the report, Biden’s polling rate has fallen to the lowest point since taking office, as surveys show that consumer confidence has continued to decline as fears of a recession intensify. In response, the Biden administration argued that the current economic situation is the inevitable result of the Fed raising interest rates to moderate inflation, while Republican officials slammed it: “The Democratic Party’s reckless economic policies are destroying our economy.”
The report also mentioned that the dismal economic outlook in the United States triggered a massive sell-off in global stock markets. Last month, a Financial Times (FT) survey showed that nearly 70% of the world’s leading economists surveyed predicted that the U.S. economy will fall into recession next year.
Screenshot of Fox Business News report
Fox Business NewsOn July 28, it was reported that data released by the Congressional Budget Office (CBO) showed that the size of the U.S. federal government’s debt is expected to reach 98% of GDP this year and climb to 185% of GDP in 2051, nearly doubling. in the national economy. According to the analysis of the report, high debt will slow down economic growth and increase the risk of financial crisis.
The article emphasizes that a surge in debt will lead to higher interest rates and borrowing costs, which in turn will depress investment and cause economic growth to slow or stagnate. In addition, the report released by the CBO also shows that the US budget deficit is also expected to widen to 10% of the total GDP in 2051.
Screenshot of the Associated Press (AP) article
Associated Press (AP)The commentary “US Economy Sending Multiple Signals: A Comprehensive Interpretation” published on July 27 analyzed economic growth, changes in consumer prices and other aspects, and pointed out that the current US economy has fallen into an embarrassing and painful predicament.
The article said that U.S. housing transactions plummeted, prices rose rapidly, and economists warned that the U.S. economy would face a recession. And the Fed is desperately trying to put out the flames of inflation with higher interest rates, making it more expensive for households and businesses to borrow.
The article emphasized that the economy has been very weak so far this year in terms of gross domestic product, and said that the Fed’s continued measures to raise borrowing rates may have overreacted and made the situation worse.
Screenshot of CNBC’s report
Consumer News & Business Channel (CNBC)Recently published an article entitled “Data show the US economy is at least teetering on the brink of recession”. The article said that the US Treasury Secretary Janet Yellen (Janet Yellen) said that the US economy is not in recession, just in a transition period of slowing growth. Kevin Hassett, the former chairman of the White House Council of Economic Advisers, dismissed that view, criticizing the White House for not acknowledging the current state of the economy as a mistake. “If I were in the White House, I wouldn’t deny it was a recession,” he added.
The report emphasized that inflation is the biggest risk facing the U.S. economy right now. In fact, real spending by U.S. consumers fell in three of the first five months of the year, the result of inflation surging at the fastest pace in more than 40 years.
The American people complained that many netizens expressed their dissatisfaction with the economic status quo on overseas social media, and complained that the US government’s ineffective governance will make the United States slide into the “Great Depression”:
So, the Biden administration is right that we are not in a “recession”. We’re just in the middle of a “Great Depression” (Editor’s Note: “Depression” is longer and more damaging than “Recession”).
We are in recession and under the current government we are heading for a “Great Depression”! !
When they fail so utterly they redefine what it means to fail.
We are in recession. Using a different phrasing of the status quo does not solve the problem.
“Raising recession fears”
We’re in a real recession, stop peeing on our heads and telling us it’s raining.
Biden reminds me of someone who will steal your wallet before helping you.
We were able to spend $40 billion on the Ukraine war when we mightn’t support our economy or even buy baby formula. What kind of country is this if you can’t even feed your own baby!
My student loan amount has gone up three times in half a year. The (excessive) interest rates are taking my hard-earned money! (Wang Luping, Shi Heyi, Ma Jiaxin, Ren Lijun)
<!–enpproperty 783482462022-07-29 22:07:26:465王鲁平 史赫奕 马嘉欣 任丽君
