ZCZC
BCN-12
US-ECONOMY-GROWTH
Trump predicts US GDP to top five percent next quarter
WASHINGTON, Aug 8, 2018 (BSS/AFP) – President Donald Trump on Tuesday
predicted US economic growth would soon hit above five percent in a bullish
speech hailing his administration’s business record.
Speaking to business leaders at a lavish dinner party at his New Jersey
golf course, Trump said growth “could be in the fives” by the next quarter.
“Nobody thought would be anywhere above, even close to 2 (percent), and
we’re at 4.1. And I think we’re going much higher,” he said.
“We anticipate this next quarter to be, this is just an estimate, but
already they’re saying it could be in the fives,” he added.
With the size of the American economy now surpassing $20 trillion, GDP
expanded by 4.1 percent in the April-June quarter, making the United States
the fastest-growing of advanced countries, according to a government report.
The second quarter acceleration — the highest in four years — came in
part after the injection of stimulus and Republican tax cuts.
But economists warned it could be a blip caused by temporary factors,
including a one-off bounce produced by Trump’s trade confrontation with
China.
The White House is counting on faster growth to pay for December’s
sweeping tax cuts by generating higher revenues.
But federal tax receipts are already plummeting, widening the federal
budget deficit, just as the costs of borrowing increase due to mounting
interest rates.
BSS/AFP/HR/0950