Economic Growth Revised Down Slightly for First Quarter

A container ship is unloaded at the Virginia International Gateway terminal in Norfolk, Va., May 10, 2019. (AP Photo/Steve Helber, File)

(CN) – The American economy grew at a 3.1% rate in the first three months of the year, down slightly from the initial estimate as experts predict growth to slow in the second quarter.

The gross domestic product, a primary indicator of economic health, is up from 2.2% in the final quarter of last year.

While the Commerce Department initially reported a 3.2% increase in the GDP for the first quarter of this year, a revised estimate released Thursday shows a still-solid 3.1% growth rate. It marks the first time since 2015 that first-quarter GDP growth has topped 3%.

However, economists don’t see GDP growth sustaining at current levels. They predict it will slow to 2% or lower for the April-June quarter as effects from the 2017 tax cuts fade.

Economists expect yearly growth of about 2.3% in 2019, down from 2.9% last year.

The Trump administration has been projecting annual GDP growth of about 3%, which would be well above the 2.2% average annual rate seen during the current economic expansion. The economy will mark 10 years of growth in July, the longest streak on record.

The ongoing trade war with China has deepened concerns about an economic slowdown in the U.S. and in global markets. Some say GDP growth could drop below 2% this year if President Donald Trump raises tariffs on virtually all Chinese imports, as he has threatened to do.

%d bloggers like this: