Slower-than-Expected US Economy Growth in Q1 2024 Could Shape Biden’s Re-election Campaign

The US economy grew less than expected in the first quarter of 2024, according to the Commerce Department. This news comes as President Joe Biden gears up for a potential re-election campaign in November against former President Donald Trump. Despite this, the country’s economic outlook remains ahead of other major industrialized economies.

The data showed a 1.6% GDP growth in the first three months, falling short of the 2.4% predicted by analysts. This decline follows a 3.4% growth rate in the previous quarter, and is attributed to decreases in consumer spending, exports, and state, federal, and local spending. However, most G20 currencies have also depreciated against the US dollar this year due to global economic challenges.

While Europe’s largest economy shows some signs of improvement, the US still leads in economic performance with an expected growth rate of 2.7% for the year according to International Monetary Fund (IMF). The inflation rate has decreased to 3.5%, but prices are still higher than pre-pandemic levels which impacts consumption and global supply chains.

Despite these challenges, President Biden has been working on several initiatives aimed at strengthening the economy such as investing in infrastructure and reducing corporate tax rates which could help stimulate growth and create more jobs for Americans. As election campaigns get underway, these issues will likely be a focal point for voters and candidates alike.